Tax laws Seychelles
Seychelles' taxation system is designed to balance domestic revenue generation with its appeal as an international financial center. Key components include:
1. Business Tax:
- Rates:
- Standard Rate: 15% on business profits.
- Reduced Rate: For profits below SCR 1 million, the rate is reduced from 25% to 15%.
- Higher Rate: Certain sectors, including telecommunications, banking, and insurance, are subject to a higher rate of 33%.
2. Income and Non-Monetary Benefits Tax:
Personal Income Tax Rates for Citizens:
- Up to SCR 8,555.50/month: 0%
- SCR 8,555.51 to SCR 10,000/month: 15%
- SCR 10,000.01 to SCR 83,000/month: 20%
- Above SCR 83,000/month: 30%
Non-Monetary Benefits Tax: Employers pay a 20% tax on non-monetary benefits provided to employees, such as housing, vehicles, and other perks.
3. Value-Added Tax (VAT):
- Standard Rate: 15% on most goods and services.
- Zero Rate: Applied to exports and specific items as outlined in the Value Added Tax Act, 2010.
- Exempt Supplies: Include goods like pharmaceuticals, basic food items, and services such as education, health, and financial services.
4. Offshore Business Taxation:
- Offshore companies conducting business outside Seychelles are generally exempt from local taxes. There are no capital gains, dividends, interest, inheritance, or property taxes for these entities.
5. International Financial Center Status:
- Seychelles is recognized as an international financial center, offering various incentives for offshore businesses. However, it has faced scrutiny regarding tax transparency. In October 2023, the European Union added Seychelles to its list of non-cooperative tax jurisdictions, citing concerns over tax transparency and fairness.
Recent Developments:
EU Tax Haven Blacklist: In October 2023, the EU added Seychelles to its blacklist of tax havens, highlighting concerns over transparency and tax practices.
Tax Reforms: The Seychelles government has implemented reforms to align with international standards, including adjustments to business tax rates and the introduction of the Income and Non-Monetary Benefits Tax Act to better regulate personal and non-monetary income taxation.
For comprehensive and up-to-date information, consulting the Seychelles Revenue Commission or a tax professional is advisable.
RELATED Blog
0 comments