President Ibrahim Mohamed Solih has ratified the first amendment bill to the Income Tax Act (Act no: 25/2019).

The amendment to the act was passed by the Parliament on July 8, 2021, at the 21st sitting of the second session of the Parliament this year and ratified by the President today.

The amendment to the Income Tax Act ratified today include imposing an income tax on temporary residents in the Maldives who earn wages. It also 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 Income Tax Act.

Submitted to the Parliament b the MP for Gaddhoo constituency, Ahmed Zahir on behalf of the government, the amendment added Article 12-I authorizing the President to make tax exemptions. And the Ministry of Finance and treasury are required to prepare an application form which outlines the eligibility for tax exemptions while the Maldives Inland Revenue Authority are to do audits of those that are made exempt b the authority of the President.

Upon ratification, the amendment has been published in the Government Gazette and has now come into effect.