Maldives - Taxation

There is no income or sales tax in the Maldives. Government revenues are generated by import taxes, tourism taxes, lease rentals on resorts, and earnings on state owned enterprises. License fees are charged for boats and motor vehicles. Uninhabited islands are leased for farming to individuals, who pay annual dues to the government; over 90% of these absentee landlords reside in Malé. In 1999, 48% of revenues came from taxes of which 64% were from import duties, and about 30% from tourism taxes. Non-tax revenue accounted for about 52% of government revenue.

Given the growing wealth in the country in recent years, in 2002 the government was considering bolstering government development revenues by instituting a personal income tax, though concerns remain that enforcement may prove difficult.