Seychelles Tax Guide

The following guide provides all the essential information you need pertaining to taxes when investing in Seychelles.

 

The Seychelles Revenue Commission (SRC) is the local authority responsible for the administration and collection of tax revenues.

 

Investors need to pay attention to the following points regarding taxation:

 

  • All businesses must be registered with the SRC for a Tax Identification Number (TIN).
  • The tax year follows the calendar year, from January 01 to December 31. However, businesses are to request permission from the Commissioner General of SRC should they have a substituted accounting period.
  • Annual tax return: Businesses are encouraged to make their annual payment on the same day that the tax return is lodged. Unless approved otherwise by the Commissioner General, the deadline for lodgement and payment is by the 31st March of the following applicable year. For example, the Presumptive and Normal Business Tax return for the year 2020 should be submitted to SRC by the 31st March 2021.
  • Concessions are offered in sectors such as Agriculture, Fisheries and Tourism.
  • The tax system in Seychelles allows foreign investors to set up a wide range of businesses. To avoid paying taxes twice, investors are protected by Double Taxation Avoidance Agreements (DTAA) that Seychelles ratified with 28 countries. 

 

General Taxes

 

Business Tax

 

Business tax is levied on the taxable income; that is, assessable income less any allowable deductions, except for those exempted in the Second Schedule, as per the Business Tax Act – Amendment 2012.    

 

Business Tax is levied at different rates depending on whether it is a Sole Trader, Company or Partnership as well as other activities as per SI 66 2012 Business Tax (Amendments of Schedule.

 

 

Company

(An entity, government body or a trustee)

Sole Trader

(Any person other than an entity or a government body)

 

25% on the first SCR 1,000,000 of taxable income

 

0% on SCR 0 to SCR 150,000 of taxable income 

30% on SCR 1,000,001 and above of taxable income  

15% on SCR 150,001 to SCR 1,000,000 of taxable income 

30% on SCR 1,000,001 and above of taxable income 

 

 

Tourism Fisheries Agriculture Health Education

 0%  on SCR 0  to SCR 250,000 of taxable income

0%  on SCR 0  to SCR 250,000 of taxable income

 0%  on SCR 0  to SCR 250,000 of taxable income

15% on taxable income

15% on taxable income

15% on SCR 250,001 and above of taxable income

15% on SCR 250,001 and above of taxable income

15% on SCR 250,001 and above of taxable income

Find out more

Find out more

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Telecommunications service providers, banks, insurance companies, alcohol and tobacco manufacturers

25% on the first SCR 1,000,000 of taxable income

33% on SCR 1,000,001 and above of taxable income 

 

 

Presumptive Tax

 

The Presumptive Tax regime was introduced in 2013 for businesses with an annual turnover that is up to SCR 1 million and not registered for Value Added Tax (VAT). Businesses will be required to pay the Income and Non-Monetary Benefits Tax and other applicable taxes.

 

Lodgement of Business Tax Return and Payment Schedules:

Presumptive Tax is payable by 31st March for the revenue generated in the previous year.

 

E.g. Taxes due for gross turnover generated in 2019, should be submitted and paid to SRC by 31st March 2020.

 

 

For example:

 

If a business makes an annual turnover of SCR 750 000 in 2019, the tax payable in 2020 will be:

750 000 x 1.5% = SCR 11 250 

 

Any business making an annual turnover above SCR 1 million will be subject to submit/lodge the normal Business Tax Return.

 

Businesses will be required to pay the Income and Non-Monetary Benefits Tax and other applicable taxes.

Value Added Tax

 

Value Added Tax (VAT) is a consumption tax levied on the sales of goods and services provided in Seychelles.  

 

VAT is levied at the point of entry and charged at the point of sale, except on goods and services exempted in S.I 4 of 2014 of the VAT (Amendment of Schedules) Regulations, 2014, and further amended by the S.I. 33 of 2018).

 

Businesses with a turnover of SCR 2 million and above will be liable to pay VAT on taxable supplies.

 

Rates:

  • 15% for goods and services consumed in Seychelles
  • 0% for goods and services not consumed in Seychelles

 

Lodgement of VAT Return and Payment Schedules:

 

Compulsory VAT registered business

 

  • Report and pay VAT on a monthly basis.
  • The due date for lodging your VAT return and Business Activity Statement (BAS) form and paying any amount due on the statement is 21 days after the end of each month.

 

Note that while supplies are exempted, registration for VAT is necessary in the instance of multiple business activities. E.g. VAT is exempted on specific imported products for farming businesses, but applied on activities within a retail outlet and other products being sold therein. 

 

View the VAT exemptions on specific imported products or locally produced goods in the S.I. 33 of 2018 and Customs Duty exemption in Customs Management (Tariff and Classification of Goods) Regulations, 2018

 

Voluntary VAT registered business

 

  • Businesses with taxable supplies of less than SCR 2 million may register for VAT
  • Report and pay VAT on a quarterly basis.
  • The due dates for lodging your VAT return and Business Activity Statement (BAS) form and paying any amount due on the statement are the:
    • Q1 Jan-March: Due date 21st of April
    • Q2 Apr-June: Due date 21st July
    • Q3 Jul – Sep: Due date 21st October
    • Q4 Oct – Dec: Due date 21st January of the following year

Income and Non-Monetary Tax

 

Progressive Income Tax

Progressive Income Tax is levied on employees’ gross emoluments e.g. (salary, allowances). The employer is required to submit a payroll on a monthly basis, no matter the number of employees even if the gross emoluments is below or within the free threshold of SCR8, 555.50. 

 

Payment Schedule

Deadline for payment is on the 21st of the following applicable month.

 

Monthly Wage (SCR)

Rates

From

To

Citizen Employee

Non-Citizen Employee

0

8,555.50

0

15%

8,555.51

10,000

15%

15%

10,000.01

83,333

20%

20%

> 83,333

 

30%

30%

 

Find out more

 

Taxation of Non-Monetary Benefits

 

Non-Monetary Benefit is any benefit provided to an employed person in respect of the person’s employment or to an associate of the employed person, including a right, privilege, service or facilities that is to be provided under an agreement for or in relation to the performance of work (e.g. motor vehicle, accommodation). Tourism and construction businesses are exempted from this tax, as per the Fourth Schedule of the Income & Non monetary Benefits Tax Act, 2010.

 

The tax on Non-Monetary Benefit is payable by the employer and the applicable tax rate is 20% of the value as stated in the Third Schedule of the Income & Non-Monetary Benefits Tax Act, 2010 except for benefits which are exempted under the same schedule of this act.

 

 

Immovable Property (Foreign-Owned) Tax

 

The Immovable Property Tax is applicable to non-Seychellois who own Immovable Property (e.g. apartments, condominiums and villas) for residential purposes only. The tax rate is 0.25% of the market value of the property.

 

For example:

 

Taxpayer A owns a property valued and confirmed by the Chief Valuation Officer at SCR 5 million.

 

Therefore:

Annual Tax Liability   =  Tax rate x Property value                   

= 0.25% x SCR 5,000,000= SR 12,500

 

The taxpayer shall pay the tax on a pro-rata basis in the financial year that the taxpayer acquires ownership of the property. Find out more  

 

Registration Process and Time Frame for Registration

  1. Complete the registration form and submit to This email address is being protected from spambots. You need JavaScript enabled to view it.

  2. The Registrar General will fix a period of 4 months in each financial year during which a person can register their Immovable Property. The dates for registration will be published in the Official Gazette and at least in one local newspaper. For instance the period for registration for the year 2020 is as from the 1st July to the 31st October.

  3. If a person acquires ownership of an Immovable Property in a financial year after the closing of the registration period, that person will have to register the following year when registration re-opens. That person will NOT be liable to pay the fine for late registration.

 

Find out more:

Immovable Property Tax booklet

Tax Process document

 

Payment Schedule

Tax is due and payable on or before 31st December of every year.

 

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