On 15 April 2020, the Maldives Inland Revenue Authority (MIRA) issued the Special Regulations on Income Tax (2020/R-25), postponing the requirement for employees to notify their election with respect to the deduction of employee withholding tax (EWT) under the Income Tax Regulations, to 31 July 2020.

The Income Tax Regulations require employees whose average monthly employment income is in excess of MVR 30,000 to make a declaration to their employers with respect to EWT. Failure by the employee to make the declaration requires their employers to deduct EWT from the employee’s employment income at the rate of 8% where employment income does not exceed MVR 150,000 and at the applicable tax rate where it exceeds MVR 150,000.

The Special Regulations stipulate that employers shall not apply the aforementioned rule on employees who fail to make the declaration, until 31 July 2020. The leeway does not apply to persons who earn employment income from multiple employers.