methods and measures to protect our rights for texts, pictures and other graphic, video materials and other subjects to copyright we publish on our website. An amount derived by a resident person in carrying on a business is derived from sources in Seychelles except to the extent that it is attributable to a business carried on through a permanent establishment of the person outside Seychelles. 10% of fees in respect of new mutual fund licences; 5% of fees in respect of Annual renewal of mutual fund licences and all other fees under that Act. A business is allowed a deduction for any interest expense incurred by the business in a tax year to the extent to which the business has used the funds or benefit of the debt or other instrument or agreement giving rise to the interest to derive taxable business income. PKF Africa Tax Guide 2018-19 Overview of tax and business regulation regimes covering significant trading jurisdictions in this region. A business that files a business tax return for a tax year is treated as having made a self-assessment of, if the business has a taxable income for the year, the amount of the taxable income of the business and the business tax payable thereon as specified in the return; or. Search Business Search Business and Company Business and Company Search provides access to the publicly available information on the Seychelles Business Register provided by businesses when they register their entity. [Second Schedule item 40 inserted by regulation 3(d) of, [Note: This Schedule should be read with caution as a number of the Acts referred to are no longer in force. Subject to subsection (3), the amount that a business is allowed as a deduction for a tax year under subsection (1) for a gift to a public fund, body, or institution shall not exceed the maximum amount for the year for that public fund, body or institution as specified in the Fifth Schedule. fifty per cent or more of the voting power in both entities; fifty per cent or more of the rights to a distribution of profits in both entities; or. If it does not have Seychelles-sourced (net) income, there would be no tax liability in Seychelles, and until an IBC does so or expects to, it does not have to register with the Seychelles Revenue Commission. trading stock or any other asset of a revenue nature used, available for use, or held in carrying on a business; is used, available for use, or held wholly or partly to derive taxable business income; and is likely to lose value as a result of wear and tear, exploitation, or obsolescence; a distribution of profits by an entity to a member of the entity; an amount returned by an entity to a member of the entity in respect of a membership interest in the entity on a partial reduction in capital to the extent that the amount returned exceeds the amount by which the nominal value of the membership interest was reduced; or. "long-term contract" means a contract for manufacture, installation, or construction, or, in relation to each, the performance of related services, that is not completed within the tax year in which work under the contract commenced, other than a contract estimated to be completed within six months of the date on which work under the contract commenced; and. the disposal was not in the ordinary course of carrying on the business. The compilation of measures is not exhaustive. Residents buying immovable property pay stamp duty at the rate of 5% of the transaction amount. it does not have an ascertainable useful life. A person that furnishes a return under subsection (1) is treated as having made a self-assessment of the gross revenue derived for the carriage by the aircraft of passengers, livestock, mail, merchandise, or goods embarked in Seychelles during the quarter and the tax payable thereon under, The tax payable by the non-resident person under. 0.50% on the monthly turnover of the current year of payment; [Seventh Schedule item 7(1)(i) repealed and substituted by regulation 2(a) of. The income of a business of a society or club which is not carried on for the purposes of profit or gain to its individual members and is , A society, association or club established for musical purposes or for the encouragement of music, art, science or literature; or. Foreign-sourced passive income is tax exempt in Seychelles, provided the company has adequate economic substance in Seychelles. For the purposes of subsection (1)(f), the net gain on disposal of an asset is the consideration received on disposal of the asset less the cost of the asset at the time of disposal. GSL/International Taxation/Tax systems of foreign countries/Seychelles. In order to pay the corporate tax in Seychelles, a business must register for taxation with the Revenue Commission. "Farming entity" means a person other than an individual engaged in the production of livestock, vegetables, flowers or other crops, (floriculture and horticultural crop); "Fisheries Processor" means a person licensed and registered with the relevant authority for the transformation of fish and marine products by a process of value added for the local market. in any other case, acquiring the asset for a cost equal to the cost of the asset for the person disposing of the asset at the time of the disposal. who is present in Seychelles for a period of, or periods amounting in aggregate to, one hundred eighty-three days or more in any twelvemonth period that commences or ends during a tax year; incorporated, formed, organised, or otherwise established in Seychelles; or. The income of Seychelles National Oil Company on or after 1.1.94. there are reasonable grounds for believing that the debt is irrecoverable. Bahrain, Barbados, Belgium, Bermuda, Botswana, China, Cyprus, Ethiopia, Guernsey, Indonesia, Isle Of Man, Jersey, Kenya, Luxembourg, Malaysia, Mauritius, Monaco, Oman, Qatar, San Marino, Singapore, South Africa, Sri Lanka, Swaziland, Thailand, United Arab Emirates, Vietnam, Zambia, Denmark, Faroe Islands, Finland, Greenland, Guernsey, Iceland, India, Netherlands, Norway, Sweden, Swiss Confederation. A member of an entity is liable to tax on a, If there is a change of fifty per cent or more in the underlying ownership of an entity, any net loss incurred for a tax year in relation to the business carried on by the entity before the change is not allowed as a deduction in a tax year after the change, unless the entity in that tax year, carries on the same business after the change as it carried on before the change; and. No penalty is imposed under subsection (8) if the Revenue Commissioner is satisfied that the reason for the instalment shortfall was due to valid circumstances beyond the control of the business. A business shall keep such records as may be prescribed. [Second Schedule item 21 renumbered as item 19 by regulation 3(b) of. [Second Schedule item 33 inserted by regulation 3(d) of, [Note: Item 33 was inserted twice with effect from the same date (1 January 2010), first by, The income of the Seychelles International, [Second Schedule item 34 inserted by regulation 3(d) of. between spouses as part of a divorce settlement or under an agreement to live apart; by reason of the transmission of the asset on the death of a person to an executor or beneficiary; or. VAT is the largest source of tax revenues, accounting for a third of total tax revenues in 2017. Income derived by the trustee of a trust during a tax year in carrying on a business is taxed, in that year, either to the trustee or the beneficiary of the trust in accordance with this section. 15) Regulations, 2012 Business Tax (Double Taxation Agreement) (No. Subject to this Act, a business conducted, by a person other than an entity, can account for business tax on a cash or accrual basis; or. Number of Act: 2. The income, on or after 1st January 1995, of the Public Utilities Corporation established under the Public Utilities Corporation Act. If the opening value of trading stock for a tax year of a business exceeds the closing value of trading stock for that year, the business is allowed a deduction for the year for an amount equal to the excess. The Seychelles has concluded 28 Double Tax Treaties (DTC) and 11 Tax Information Exchange Agreement (TIEA) agreements with the following jurisdictions: 28 DTCs: Bahrain, Barbados, Belgium, Bermuda, Botswana, China, Cyprus, Ethiopia, Guernsey, Indonesia, Isle Of Man, Jersey, Kenya, Luxembourg, Malaysia, Mauritius, Monaco, Oman, Qatar, San Marino, Singapore, South Africa, Sri Lanka, Swaziland, Thailand, United Arab Emirates, Vietnam, Zambia. Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations. A business accounting for taxable income on an accrual basis shall compute the assessable income and allowable deductions arising under a long-term contract during a tax year under the percentage of completion method. a foreign government or political subdivision of a foreign government; any patent, invention, design or model, secret formula or process, trademark, copyright, or other like property or right; contractual rights with a benefit for a period of more than one year; or. 4) Regulations, 2006, Business Tax (Double Taxation Agreement) (No. B = is the useful life of the intangible in whole years. Discover the worlds most comprehensive online database of national investment laws and regulations. a business disposes of trading stock by sale, gift, or otherwise; the trading stock constitutes or constituted the whole or part of the assets of the business; and. A contribution paid by a self-employed person in a tax year as a member of the Seychelles Pension Fund to the Fund for their benefit is, to the extent prescribed as per the Seychelles Pension Fund Act, 2005, an allowable deduction of the persons business. If the fair market value of an asset, property, service, or benefit cannot be determined under subsection (1) or (2), the fair market value is the amount determined by the Revenue Commissioner. The main tax measures are summarized as follows: New standard business tax rates are set as follows for most sectors, including those previously eligible for reduced rates: in the case of an entity, government body, or a trustee: 15% on taxable income of up to SCR 1 million; and 25% on taxable income above SCR 1 million; The income of the Central Bank of Seychelles established under the Central Bank of Seychelles Act, 1982. prescribing all matters which by this Act required to be prescribed, or which are necessary or convenient to be prescribed for giving effect to this Act; and. In this section, "tax year" means the twelve months ending on 31st of December. Foreigners who own residential immovable property are liable to an annual immovable property tax at the rate of 0.25% of the market value of such property. [Second Schedule item 22 renumbered as item 20 by regulation 3(b) of. Guide to fiscal information: Key economies in . The following businesses are subject to tax at the rate specified in this Schedule and in accordance with the methodology specified in this Schedule. [Second Schedule item 37 inserted by regulation 3(d) of. "absorption-cost method" means the generally accepted accounting principle under which the cost of an item of trading stock is the sum of direct material costs, direct labour costs, and factory overhead costs; "average-cost method" means the generally accepted accounting principle under which the valuation of trading stock is based on a weighted average cost of items of trading stock on hand; "direct labour costs" means labour costs directly related to the manufacture or production of trading stock; "direct material costs" means the cost of materials that become an integral part of the trading stock manufactured or produced, or which are consumed in the manufacturing or production process; "factory overhead costs" means the total costs of manufacturing or producing trading stock, other than direct labour and direct material costs; "first-in-first-out method" means the generally accepted accounting principle under which the valuation of trading stock is based on the assumption that trading stock is sold in the order of its acquisition; "prime-cost method" means the generally accepted accounting principle under which the cost of trading stock is the sum of direct material costs, direct labour costs, and variable factory overhead costs; and. For sole traders and partnerships, the tax rates are: Reduced tax rates are established for various sectors of the economy. if the business has made a net loss for the year, the amount of the net loss of the business as specified in the return. For the purposes of subsection (2), economic performance occurs. "hotel" means an establishment licensed as a hotel, guesthouse, or self-catering establishment under the Licence Act, 1986. Interest on deposits, bonds, etc. plus the amount by which any consideration given by the person for the replacement asset exceeds the consideration received by the person for the asset or intangible compulsorily acquired. If a taxpayer attempts to split income with an associate, whether. If a net loss is not wholly deducted under subsection (2), the amount not deducted is carried forward to the next following tax year and applied as specified in subsection (2) in that year, and so on until the loss is fully deducted, but no loss can be carried forward for more than five tax years after the year in which the loss was incurred. [Second Schedule item 38 inserted by regulation 3(d) of. the maintenance of animals for the purpose of selling them or their bodily produce, including natural increase, and includes the manufacture of diary produce by a business that has also produced the raw material used in that manufacture. A contribution paid by an employer in a tax year to the Seychelles Pension Fund in respect of a worker employed in the employers business, other than by way of deduction from wages is, to the extent prescribed as per the Seychelles Pension Fund Act, 2005, an allowable deduction to the business. The income of Centre Mont Royal established under the Misuse of Drugs (Centre Mont Royal) Regulations 2001. A = is the amortisation deduction computed under subsection (2) after taking into account subsection (5); B = is the number of days in the tax year the asset is used or available for use in deriving taxable business income; and. Notwithstanding subsections (1) and (2), the following amounts are derived from sources in Seychelles. GST is levied at 7% and 10% rates, 15% applies to telecommunications services. If an asset has been lost or destroyed by a person, the consideration received for the asset includes any compensation, indemnity, or damages received by the person as a result of the loss or destruction, including amounts received as a consequence of. 5) Regulations, 2012, Business Tax (Double Taxation Agreement) (No. An intangible is treated as having a useful life of ten years if, its actual useful life is more than ten years; or. The initial Act 1987 states that residents, non-resident companies, and other businesses that are not corporates must pay business taxes from any income earned from the country. A business is allowed a deduction (referred to as an "amortisation deduction") for the decline in value of an intangible of the business wholly or partly used in a tax year in deriving taxable business income. Notwithstanding subsection (2), an estimate of business tax payable by the business for a tax year may be furnished to the Revenue Commissioner. The rates of withholding tax under this Act on payments made by a company referred to in sub-paragraph (1) are as follows, In respect of dividend paid to a resident 0%, In respect of dividend paid to a non-resident 0%, In respect of interest paid to a resident 0%, In respect of interest paid to a non-resident 0%, In respect of royalty paid to a non resident for the use of, or the right to use, any copyright, patent, design or model or plan or trademark 0%, In respect of royalty paid to a non-resident for the use of, or the right to use, any secret formula, process or know-how whether the know how is technical, managerial or otherwise and any other intellectual property or right 0%, In respect of royalty paid to a non-resident for the use of, or the right to use, any industrial, commercial or scientific equipment 0%, [Seventh Schedule item 3 repealed by regulation 6(a)(a) and item 5 renumbered as item 3 by regulation 6(a)(b) of. No tax credit is allowed if the tax withheld is a final tax on the income under. by reason of the compulsory acquisition of the asset under any law if the consideration received for the disposal is reinvested by the recipient in an asset of a like kind (referred to as a "replacement asset") within one year of the disposal. No deduction is allowed for so much of a sum paid or credited by an entity to a member or director of the entity, or to an associate of a member or director, as, remuneration for services rendered by that person; or. A small business with the turnover of less than SCR1,000,000 shall be subject to presumptive tax unless otherwise authorised by the Revenue Commissioner. The business set out below are subject to special rate of tax as specified, A person issued with a license as an importer/retailer operating asan Exclusive Shop authorised by the Government, A person issued with a license as an importer/retailer operating asa Duty Free Shop authorised by the Government, hotel, guest house or self-catering establishment, fixed or rotary wing passenger air transport services in respect ofall domestic flights, domestic ferry services for the transport of freight or passengers, boat or yacht charter (including liveaboard), 0% of the first R250,000 of taxable income; and at 15% on the remainder, There shall be allowed in respect of the following business a special deduction, in addition to any other allowable deduction, of the expenditure incurred for marketing and promotion to the extent of 5% of the Taxable, [Eighth Schedule item 2 Part I opening paragraph repealed and substituted by, fixed or rotary wing passenger air transport services in respect of all domestic flights, domestic ferry services for the transport of freight or passenger. if the consideration received on disposal is less than the written down value of the asset at the time of disposal, the difference is allowed as a deduction for that year; if a depreciable asset has been used partly to derive taxable business income and partly for another purpose, the amount included in assessable income under subsection (6)(a) is allowed as a deduction under subsection (6)(b) is reduced by the proportion of the non-business use; the written down value of an asset at the time of disposal of the asset is the cost of the asset reduced by the total depreciation deductions allowed under this section or that would have been allowed but for subsection (4). Employment income of individuals is subject to income tax at the following rates for citizens: For non-citizens, there is no zero tax rate, otherwise the taxation scale is the same. Subject to subsection (2), in the case of an entity carrying on a life insurance business either exclusively or in addition to a short-term insurance business, the gains or profits from the life insurance business are the investment income less the management expenses including commission. An amount that is not otherwise deductible under this Act that is paid by a business in a tax year as a pension, gratuity, or retiring allowance to a person who is or has been an employee, or a dependant of an employee of the business is an allowable deduction to the extent that, in the opinion of the Revenue Commissioner, the amount is paid in good faith in consideration of the past services of the employee in the operations carried on by the business for the purpose of deriving taxable business income. Chapter 1 gives an overview of Seychelles' key economic and tax challenges. treat separate businesses carried on by the same person as a single business if business activity has been fragmented under a tax avoidance scheme. the total amount of any other expenditure incurred by the entity in the year in carrying on the business and allowable as a deduction in accordance with this Act. This is the assessable income once any deductions (if available) have been made. A person required to lodge a business tax return for a tax year shall attach to the return any tax withholding certificate as prescribed. If the tax payable for a quarter is not paid within three months of the due date, the Revenue Commissioner may issue to the Seychelles Civil Aviation Authority a certificate specifying the name of the non-resident person and the amount of tax due, and the Civil Aviation Authority shall refuse clearance from any airport in Seychelles to any aircraft owned or chartered by the person until the tax due has been paid. as exceeds an amount that, in the opinion of the Revenue Commissioner, is reasonable. Minister for Finance, Economic Planning and Trade Naadir Hassan presented . Subject to this section, the cost of an asset is the sum of the following amounts. The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies. [Eighth Schedule item 2 Part II amended by. Government Portal, Seychelles Budget speech 2022. A tax return shall be in the prescribed form and furnished in the prescribed manner. paid by a non-resident person as an expense of a business carried on through a permanent establishment of the person in Seychelles; a natural resource amount in respect of a natural resource taken in Seychelles; or. [Eighth Schedule item 2 Part III opening paragraph amended by. the total amount of premiums derived by the entity for the year for the insurance of any risk in Seychelles in carrying on such business, including premiums on reinsurance but excluding premiums returned to the insured; the total amount of any income derived in the year by the entity from sources in Seychelles in carrying on such business, including commission or expense allowance derived from the reinsurance of any risk in Seychelles and any income derived from investments; and.
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