The Maldives Inland Revenue Authority (MIRA) has announced that the deadline for submitting employee and non-resident withholding tax return payments for September 2023 is today.
Employee Withholding Tax (EWT) is an employee’s income tax segment that an employer is responsible for deducting and retaining. When necessary, employers must subtract EWT from the compensation they pay to their employees. Compensation encompasses salaries, wages, allowances, and perks provided to the employee, regardless of whether they are received in cash or non-monetary forms.
Non-resident Withholding Tax (NWT) is a procedure by which individuals who are not residents of the country but who earn certain types of income as outlined in section 55 of the Income Tax Act within the Maldives are subject to taxation.
The responsibility for withholding and remitting this tax to MIRA falls upon the entity conducting business within the Maldives, the payer, who disburses the income to the non-resident.