President Ibrahim Mohamed Solih has passed the First Amendment to the Income Tax Act today – which allows the President to grant special exemptions on paying income tax for those working in some professions or to businesses undertaking certain projects.
The amendment was proposed by Gadhoo MP Ahmed Zahir which stipulates that the President be vested the power to grant exceptions on paying income tax in some professions or to business that undertakes certain projects. It also further states that the exemption categories must be decided by the President following consultations with his cabinet.
Accordingly, the effect it would have on the Government’s income, advantages and disadvantages to the economy and the society in addition to the goal aimed to achieve by granting exemption and how it may be achieved must be taken in account when deciding on the exemption categories.
The amendment to the Income Tax Act ratified today also imposes an income tax on temporary residents in the Maldives who earn wages, outlines details on how to calculate employee withholding tax and the special exemptions given upon paying income tax, along with additional details that give further elaboration to the Act.
Following the ratification, the amendment has been published in the Government Gazette and is now in effect.