Income Tax Act is in effect starting today.

The bill was made in to law on 4 December 2019 with 67 votes and was ratified by the President Ibrahim Mohamed Solih on 17 December 2019.

According to the law, income tax will be collected from all income aside from salary. Tax collection from salary is set to begin in April.

And so, the tax from salary from salary, business profits, rental profit, interest annuity, pension and retirement, beneficiary benefit and royalties.

The law states that 5.5 percent as tax will be required from those getting an income between MVR 60,000 and 100,000 while 8 percent from incomes between MVR 100,000 and 150,000 and 12 percent from incomes MVR 150,000 and 2000,000 along with 15 percent from incomes above MVR 200,000.

Introducing income tax was a campaign pledge of the current administration included to increase state revenue.