The Maldives generated USD 88.85 million in income tax revenue during the first two months of the year, marking a robust 41.1 percent increase over the USD 63.26 million collected during the same period in 2025. Data released by the Maldives Inland Revenue Authority underscore a significant expansion in the state’s primary direct taxation stream.
The strengthening of these fiscal collections was anchored by the performance of corporate and non-individual income taxes, which remain a central pillar of the national revenue framework. This growth persists despite a modest 7 percent contraction in the specific category of taxes levied on companies and non-individual entities; collections for this segment reached USD 41.23 million in the past two months, compared with the USD 44.36 million recorded during the corresponding window last year.
A dramatic spike in revenue collected from non-residents and temporary residents within the island nation effectively neutralised this specific decline. Non-resident withholding tax receipts from this demographic soared to USD 11.74 million in the opening months of the year, representing an increase of approximately 200 percent over the previous year’s figures.
The Income Tax Act, ratified to broaden the national revenue base, governs this direct taxation framework. While the broader provisions of the legislation came into effect on 1 January 2020, the employee withholding tax, the taxation of employee wages and remuneration, was formalised on 1 April 2020. Statutory requirements mandate that residents settle taxes on global income, while non-residents and temporary residents contribute solely on income generated within the Maldives.