Maldives capital gains tax calculator

There is no separate capital gains tax. The gain is income: section 3(l) of the Income Tax Act (Law 25/2019) taxes gains on the disposal of property, and the individual scale of section 7 takes it on top of your other income, 0% up to MVR 720,000 of taxable income, then 5.5%, 8%, 12% and 15% above MVR 2,400,000.

Yes, when it is the only immovable property you own and you have lived in it as your main home for at least 2 years without absence from the day you acquired it. A second property, or a rental or investment property, is taxed.

No, when a single disposal is MVR 40,000 or less of consideration and all such disposals in the year total MVR 100,000 or less. Go over the MVR 100,000 yearly cap by one rufiyaa and every small disposal of that year is taxable.

A capital loss offsets capital gains only. It nets the year's gains first, and the excess carries forward for up to 5 years against later capital gains, earliest loss first. It never reduces salary or business profit.

There is no separate capital gains tax. Section 3(l) of the Income Tax Act (Law 25/2019) makes the gain on the disposal of movable, immovable, intellectual or intangible property income, and section 30(a) measures it as the consideration received less the cost base. A resident individual's gain on shares, funds, crypto, property or valuables is taxed on the individual scale of section 7 together with the year's other income.

The individual scale is 0% on taxable income up to MVR 720,000, 5.5% from MVR 720,000 to MVR 1,200,000, 8% from MVR 1,200,000 to MVR 1,800,000, 12% from MVR 1,800,000 to MVR 2,400,000 and 15% above MVR 2,400,000, each band computed separately (section 7). The scale is carried by this year's income-tax record; the engine reads it from there. The gain is taxed at the margin on top of the year's other income.

The cost base is the expenditure incurred in acquiring or improving the property plus the expenditure incurred directly in connection with the disposal (section 30(c)). For property acquired before 1 January 2020 the value is its open market value on 1 January 2020 (Income Tax Regulation, section 93). A sale between associates is taxed on the consideration determined under section 67 of the Act (Regulation, section 94).

Five disposals never enter an individual's taxable income (section 30(e)): a disposal of property or similar property for total consideration of not more than MVR 40,000, provided the total consideration of all such disposals in the accounting period does not exceed MVR 100,000; the sole immovable property an individual owns that is also the principal private residence; a transfer to the individual's spouse, child, mother or father; personal clothes, home furniture, household appliances and loose tools; and a transmission on the individual's death. The consideration tests look at proceeds, not at the gain.

A principal private residence is a place the person has occupied as the main home for not less than 2 years without any periods of absence, starting on or after the date of acquiring ownership, and it must be the only property the person owns (section 12(s)). Temporary absence for renovation, work, education or medical care does not break the occupation if the place earns no income. A part of the home used for another purpose is not exempt.

A capital loss is deducted only from capital gains: first from the gains of the same accounting period, and the excess is set off against gains of later periods for not more than 5 years from the end of the period in which the loss arose, earliest loss first (section 34; Regulation, section 95). A capital loss never reduces salary, business profit or any other income.

Residents are taxed on worldwide income, so a gain on a foreign-listed share is inside the charge (section 10(a)). An individual is resident with a permanent place of living in the Maldives or with 183 days or more of presence in any 12-month period (section 79). A non-resident is taxed only on Maldives-source gains: Maldives immovable property, shares in a company, partnership or trust resident in the Maldives, and interests whose value is more than 50% from Maldives immovable property (section 11(n)). The payer withholds 10% of the gross payment to a non-resident and pays it to MIRA (section 50-1).

The Act exempts dividends a resident receives from a resident company and interest or profit on listed debt securities (section 12), but it exempts no gain on shares: a gain on Maldives Stock Exchange shares, on foreign shares and on funds is taxed like any other gain, with no holding-period relief and no discount.

Gains made in carrying on a business, and gains on property for which a capital allowance can be claimed, are business income taxed on the same scale (sections 3(b) and 3(k)). This calculator serves the private seller.

The final return and the tax are due on 30 June of the year after the tax year; interim returns and payments of one half of the previous year's tax are due on 31 July of the tax year and 31 January of the next (section 42). The tax year is the calendar year and the Act took effect on 1 January 2020.