Seychelles tax system: audit, reporting and optimization of taxation of Seychelles companies and individuals: VAT, income tax and capital gains

Basic taxes (briefly)

Personal tax 0-30%
Corporate tax (in detail) For companies, tax rates are: taxable income up to SCR 1 million - 25%; over SCR 1 million - 33%.
Capital gains tax. Details Gains on the sale of assets are taxed at the normal corporate tax rate.
VAT. Details GST is levied at 7% and 10% rates, 15% applies to telecommunications services.
Other taxes Social contributions, Property taxes
Government fee
Stamp duty 1-12,5%.

International tax agreement

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


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Personal taxes

Employment income of individuals is subject to income tax at the following rates for citizens:

  • income up to SCR (Seychelles rupee) 8,555.5 per month – 0%;
  • from SCR 8,5555 to 10,000 per month – 15%;
  • from SCR 10,000 to 83,000 per month – 20%;
  • over SCR 83,000 – 30%.

For non-citizens, there is no zero tax rate, otherwise the taxation scale is the same.

Employers pay 20% tax on employee’s non-monetary benefits such as car, housing, etc.

Business tax

Income from business is subject to business tax.

For sole traders and partnerships, the tax rates are:

  • taxable income up to SCR 150,000 – 0%;
  • from SCR 150,000 to 850,000 – 15%;
  • over SCR 850,000 – 33%.

For companies, the tax rates are:

  • taxable income up to SCR 1 million – 25%;
  • over SCR 1 million – 33%.

Reduced tax rates are established for various sectors of the economy. Small non-VAT registered businesses with revenues of up to SCR 1 million can pay turnover tax at the rate of 1.5% (in which case they do not pay business tax).

Seychelles has a territorial tax system, which is gradually being amended. Changes introduced to tax legislation in late December 2020 should ensure the removal of Seychelles from the EU’s list of non-cooperative jurisdictions. These changes provide the following for large Seychelles companies:

  • Profits of Seychelles companies generated by overseas permanent establishments are not taxable in Seychelles. Profits from overseas activities that do not create a permanent establishment abroad are taxable in Seychelles. The definition of a permanent establishment has been updated to align with the OECD / United Nations definition.
  • Foreign-sourced passive income is tax exempt in Seychelles, provided the company has adequate economic substance in Seychelles.
  • Foreign-sourced income from IP rights will be taxed in Seychelles, except for income from patents (similar rights) related to R&D carried out in Seychelles.

Work is also in progress to meet the OECD's requirements for transparency and information exchange.

CFC rules

None.

Withholding tax

Dividends and royalties are subject to 15% withholding tax. Interest paid on loans by companies other than banking institutions is also subject to 15% withholding tax. Interest on deposits, bonds, etc. is taxed at different rates.

The tax may be withheld on certain other types of income.

Corporate social responsibility tax

This tax is charged to companies with a turnover of at least CSR 1 million. It is payable monthly at the rate of 0.5% of the revenues.

VAT

The standard VAT rate is 15%.

Social security contributions

Social security contributions are paid on employment remuneration at the rate of 20% by employers and 2.5% by employees.

Immovable property tax

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.

Stamp duty

Residents buying immovable property pay stamp duty at the rate of 5% of the transaction amount. There are special rules for non-residents.

Stamp duty may also be payable on certain other transactions.

Double Tax Agreements

The Seychelles has exchange of information relationships:

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.

11 TIEAs: Denmark, Faroe Islands, Finland, Greenland, Guernsey, Iceland, India, Netherlands, Norway, Sweden, Swiss Confederation.

Exchange control

There are generally no restrictions on the repatriation of investments or income. Practice shows that a fall in foreign currency earnings (in particular, following a significant drop in the number of tourists) can make the jurisdiction introduce certain restrictions (in particular, on imports).

    Taxes of Seychelles

    Min. rate for corporate tax 25%
    Capital gains tax Regular Rate
    VAT 7%/10%/15%
    Withholding tax 15%/15%/15%
    Exchange control No
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