On 1 April 2020, the employee withholding tax (EWT) regime introduced by the Income Tax Act came into effect.
The Act obliges employers to deduct EWT from their employees’ employment income at the following rates:
| Employment income per month (MVR) | Rate (%) |
| up to 60,000 | 0% |
| 60,001 – 100,000 | 5.5% of the amount in excess of 60,000 |
| 100,001 – 150,000 | MVR 2,200 + 8% of the amount in excess of 100,000 |
| 150,001 – 200,000 | MVR 6,200 + 12% of the amount in excess of 150,000 |
| 200,001 and over | MVR 12,200 + 15% of the amount in excess of 200,000 |
An employer is required to file an EWT Return (MIRA 601) for a month if at least one employee was subject to EWT during that month. The first EWT Return and associated payment is due on 15 May 2020.