Capital Gains Tax
There is no capital gains tax.
Corporation tax
Business tax is levied on the taxable income of a business (less any allowable deductions). The rate of business tax payable are set out below.
Sole trader and partnership rates
- 0% on the first SCR 102,666
- 15% between SCR 102,666.01 up to SCR 1 million
- 25% above SCR 1 million
Companies do not have a tax free threshold. They are taxed at15% on the first SCR 1 million and 25% above SCR 1 million. r. Tax can either be paid annually following the assessment of business tax returns or on a monthly provision basis, either through deduction at source or payment.
Please note that the Business Tax Act, 2009 provides for special rates for certain, businesses which are listed in the Act.
Double taxation avoidance agreements
Double taxation avoidance agreements in force:
- Jersey- Seychelles DTAA- Date of entry into force: 5th January 2017
- Guernsey-Seychelles DTAA- Date of entry into force: 6th October 2016
- Singapore- Seychelles DTAA- Date of entry into force: 18th December 2015
- Kenya-Seychelles DTAA – Date of entry into force: 9th April 2015
- Swaziland – Seychelles DTAA- Date of entry into force: 11th February 2015
- Sri Lanka –Seychelles DTAA- Date of entry into force: 26th March 2014
- Ethiopia – Seychelles DTAA- Date of entry into force: 1st January 2014
- Isle Of Man- Seychelles DTAA- Date of entry into force: 16th December 2013
- Luxembourg- Seychelles DTAA- Date of entry into force: 19th August 2013
- Bermuda – Seychelles DTAA- Date of entry into force: 19th July 2013
- San Marino- Seychelles DTAA- Date of entry into force: 30th May 2013
- Monaco - Seychelles DTAA- Date of entry into force- 1st January 2013
- Bahrain - Seychelles DTAA, Date of entry into force: 3 February 2012
- Barbados - Seychelles DTAA, Date of entry into force: 28 February 2008
- Botswana - Seychelles DTAA, Date of entry into force: 22 June 2005
- China - Seychelles DTAA, Date of entry into force: 17 January 2000
- Cyprus - Seychelles DTAA, Date of entry into force: 2 November 2006
- Indonesia - Seychelles DTAA, Date of entry into force: 16 May 2000
- Malaysia - Seychelles DTAA, Date of entry into force: 10 July 2006
- Mauritius - Seychelles DTAA, Date of entry into force: 22 June 2005
- Oman - Seychelles DTAA, Date of entry into force: 20 January 2004
- Qatar - Seychelles DTAA, Date of entry into force: 1 January 2008
- South Africa - Seychelles DTAA, Date of entry into force: 3 July 2002
- Thailand - Seychelles DTAA, Date of entry into force: 14 April 2006
- U.A.E - Seychelles DTAA, Date of entry into force: 23 April 2007
- Vietnam - Seychelles DTAA, Date of entry into force: 7 July 2006
- Zambia - Seychelles DTAA, Date of entry into force: 4 June 2012
DTA Agreements Signed (Not In Force):
- Double Taxation Agreement with Belgium
- Double Taxation Agreement with Kuwait
- Double Taxation Agreement with Lesotho
- Double Taxation Agreement with Malawi
- Double Taxation Agreement with Zimbabwe
Tax Information Exchange Agreements (TIEAs):
- Denmark- Seychelles TIEA- Date of entry into force: 14th May 2012
- Faroe Islands- Seychelles TIEA- Date of entry into force: 14th May 2012
- Finland - Seychelles TIEA- Date of entry into force: 14th May 2012
- Greenland - Seychelles TIEA- Date of entry into force: 11th January 2014
- Guernsey - Seychelles TIEA- Date of entry into force: 22nd July 2012
- Iceland - Seychelles TIEA- Date of entry into force: 19th October 2013
- India - Seychelles TIEA- Date of entry into force: 28th June 2016
- Netherlands - Seychelles TIEA- Date of entry into force: 1st September 2012
- Norway - Seychelles TIEA- Date of entry into force: 11th August 2012
- Sweden - Seychelles TIEA- Date of entry into force: 6th October 2013
- Swiss Confederation - Seychelles TIEA- Date of entry into force: 10th August 2015
Further information on Double Taxation Avoidance Agreements can be found here.
Exchange control
The Foreign Exchange Act, 2009 regulates the dealers which may deal with foreign currency and set exchange rate.
Export Processing Zone
Details about the Seychelles International Trade Zone is available here.
There is no tax on business profits and dividends; and other exemptions and concessions are provided for businesses in the International Trade Zone.
Interest
Withholding Tax is payable by non-residents at rates between 0 and 15% depending on the type of account and interest.
Seychelles Revenue Commission
Dividends
Withholding Tax is payable by non-residents at 15%.
Losses
Pursuant to section 25 of the Business Tax Act 2009, if the total amount of deductions allowed to a business for a tax year exceeds the total assessable income of the business for the year, the amount of the excess is the net loss of the business for the year. If a business has a net loss for a tax year, the amount of the loss is carried forward to the following tax year and allowed as a deduction in computing the taxable income of the business for that following year.
If a net loss is not wholly deducted, the amount not deducted is carried forward to the next following tax year and applied as specified in above 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. If a business has a net loss carried forward under this section for more than one tax year, the loss of the earliest year is deducted first. If a person carried on more than one business, this section applies separately to each business.
Other taxes
Excise tax is a tax levied on cigarettes or tobacco, alcohol, motor vehicles and petroleum products imported or locally manufactured in Seychelles.
The Customs Managementment Act, 2011 provides for the duties, taxes or levies payable on imports or exports of goods to or from Seychelles.
Personal income tax
Income and Non-Monetary Benefits Tax
This is payable at the following rates:
- Seychellois Employee (Income SR 10000 – SR 83,333) - SR 216 + 20% of Amount exceeding SR 10,000
- Seychellois Employee (Income exceeding SR 83,333 ) - SR 14,883 + 30% of Amount exceeding SR 83,333
- Non-Seychellois Employee (Income SR 10000 – SR 83,333) - SR 1500+ 20% of Amount exceeding SR 10,000
- Non-Seychellois Employee (Income exceeding SR 83,333) - SR 16,166 + 30% of Amount exceeding SR 83,333
Real property tax
No specific property income tax.
Royalties
Withholding Tax is payable by non-residents at 15%.
Stamp duty
Stamp duty is payable on the purchase of immovable property at a rate of 5% of the purchase price.
Note that foreign nationals and foreign corporations are not permitted to purchase immovable property in Seychelles or to purchase any right to the property, lease any property or enter into any agreement which includes an option to purchase or lease any such property or right without first obtaining sanction from the Government. The sanction application fee is 1.5% of the purchase price.
Technical service fees
15%
Thin Cap regulations
There are no thin capitalisation regulations.
Transfer pricing
The Seychelles Revenue Commission has released a public ruling to provide the Revenue Commissioner's view on the application of transfer pricing rules to a business transaction.
Value Added Tax
Value added tax (VAT) is a consumption tax levied on the sales of most goods and services provided, payable at 15%. VAT is levied at the point of entry and charged at the point of sale, except on goods and services exempted in the Value Added Tax Act, 2010.
