Remittance tax in Maldives
Introduction to remittance tax in Maldives – Every expatriate working in Maldives needs to pay 3% of the money remitted through any bank in Maldives. Once you do the remittance, the bank would charge you 3% as remittance tax.
You do not have to pay any tax for the money that you spend in Maldives or keep it with you or in your bank.
Few confusions on Remittance tax in Maldives
- Will the tax be deducted during remittance? – Yes, the tax would be added like the bank charges.
- Are the employed expats allow to carry cash when they travel home? -No, you are supposed to declare it and pay the tax before you carry by hand as per the law. I don’t see anybody checking this, but if caught, you will be penalised.
- What about employees paying withholding tax? – No they do not need to pay remittance tax, this is applicable only for expatriates working in Maldives on a work visa.
3% remittance tax in Maldives is too much for many of the expatriates. Other than remittance tax, the bank would deduct other changes and for buying forex, the expat has to shell out more money.
Now what has happened is most of the expatriate employees are not sending their salary home through bank. Some carry when they go home or they send it through others traveling to their country. This is not correct as per the law.