Income Tax

Income Tax was effective from

• 1 January 2020

• 1 January 2021

• 1 April 2020

• 17 December 2020

Residents are taxed from;

• Their world wide income

• Income derived from Maldives only

• Their business income only

• Their rental income only

For Income Tax purpose, who is a "resident"?

• Employee of the Government of the Maldives who is posted overseas during a tax year

• A company director of a company incorporated in Maldives

• A person who stay in Maldives for 123 days in a tax year

• A person who owns a Maldivian passport

Suhani is a nurse working in Male' Hospital. Her Husband Dr. Paresh who is an Indian national is also working in Maldives. They both have a work visa. Suhani owns a property and earns rental income from India. They were staying in Maldives throughout the year during 2020. For income Tax purpose;

• Suhani is a temporary resident

• Suhani is a non-resident

• Suhani is a resident in Maldives

• Dr. Paresh is a resident of Maldives

Alphabet Pvt limited is a company incorporated in Sri Lanka. Its head office is situated in Maldives. for Income Tax purpose Alphabet Private Limited is;

• a resident company

• a non-resident company

• a resident company if they have Maldivian shareholders

Which of the following are exempt from Income Tax

• Dividend received by a resident from a resident company

• Dividend received by a resident from a non-resident company

• Profit received by a non-resident from a resident partnership

• Dividend received by a non-resident from a resident company

For income tax purpose, remuneration refers to;

• Cash and non-cash benefits provided to the employee

• Only cash benefits provided to employee

• 5.5% of total cash and non-cash benefits given to employee

• Only non-cash benefits given to the employee

Which of the following statement is TRUE

• For income tax purpose, a director of a company is an employee

• Directors of a company is not required to pay Income Tax

• remuneration paid to company directors are not subject to employee withholding tax

• Directors of a company are required to submit MIRA 604 form irrespective of their pay

Persons who are required to register under the Business Registration Act is;

• required to register for Income Tax.

• required to register for Income Tax only if their taxable income exceeds 720,000 during a tax year.

• not required to register for Income Tax

• required to register for GST

Hassan and Haleem jointly owns a building and is rented out. They receive a monthly rent of MVR 45,000.

• Hassan and Haleem is required to register for Income Tax as a "deemed partnership"

• Hassan and Haleem is required to register separately for Income Tax

• Hassan is required to register for Income Tax as he earns more than MVR 40,000 per month

• Hassan and Haleem is not required to register as a deemed partnership since they are not required to register under Business Registration Act.