Tax revenue from business profits and property sales have exceeded forecasts in the government budget approved for the year, statistics from the Finance Ministry show.
The revenue was collected as taxes from individuals and businesses:
- Corporate income tax from business revenue
- Individual income tax from personal income
- Employee Withholding Tax from high earners on high salaries
- Non-resident Withholding Tax from expatriates who earn an income in the Maldives
- Bank income tax from the revenue of banks
The increase in tax revenue from budget forecasts came from higher corporate income tax collection. The figure was calculated based on last year's revenue.
While MVR 2.1 billion was forecast as corporate income tax receipts for the whole year, MVR 2.6 billion has been collected as of the latest 'Weekly Fiscal Development' report, which amounts to an increase of MVR 514.5 million.
The corporate income tax is levied at the rate of 15 percent from businesses that earn annual revenues above MVR 500,000. The increase in tax revenue is a good sign for the recovery of businesses from the Covid crisis.
Revenue from income taxes:
- Corporate income tax - MVR 2.6 billion
- Individual income tax - MVR 275 million
- Withholding Tax - MVR 779 million
- Other business and property taxes - MVR 969.3 million
The state has earned a total of MVR 21.3 billion so far, which was 66 percent of revenue and grants projected for the year.
