Maldives Government has collected MVR 613 million as a Bank profit tax in 2019. According to the statistics from Maldives Inland Revenue (MIRA) , this was MVR 49 Million increase compare to the previous year .
Bank profit tax is the tax collected from Banks net profit . In the Maldives, Bank Profit Tax is a tax imposed under the Bank Profit Tax Act. Banks are required to pay 25 percent of their net profit as bank profit tax. All banks with their head office in the Maldives and branches of foreign banks operating in the Maldives are required to pay Bank Profit Tax. Hence banks are paying bank profit tax, they don’t have to pay business profit tax( BPT).
Banks play an important role in the financial sector of the Maldives.This sector comprises of commercial banks and non-bank financial institutions.
Currently, there are 8 operating banks in Maldives . They are Bank of Maldives Plc. (BML), State Bank of India (SBI), Habib Bank Limited (HBL) , Bank of Ceylon (BOC), Hong Kong Shanghai Banking Corporation Ltd. (HSBC), Mauritius Commercial Bank Maldives Pvt. Ltd. (MCB), Maldives Islamic Bank Pvt Ltd. (MIB) and Commercial Bank of Maldives Pvt Ltd. (CBM).
The non-bank financial institutions include insurance companies, a finance leasing company, a housing finance company, money remittance companies and payment service providers, the pension fund and companies operating in the capital market.