the amount of any overpaid instalments is applied against future business tax instalments due. [Second Schedule item 37 inserted by regulation 3(d) of. For the purposes of this section, the gross gaming revenue of the business of a casino is deemed to be the taxable income derived by the business in Seychelles. The following businesses are subject to tax at the rate specified in this Schedule and in accordance with the methodology specified in this Schedule. VAT is the largest source of tax revenues, accounting for a third of total tax revenues in 2017. If the method of accounting used by a business in computing the taxable income of a business changes, adjustments shall be made in the tax year of change to items of assessable income, deduction, or credit, or to any other item affected by the change so that no item is omitted and no item is taken into account more than once. [First Schedule item 1(d) inserted by regulation 2(c) of. What is the Seychelles company tax rate? One IBC [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by regulation 3(d) of, [Note: This Schedule should be read with caution as a number of the Acts referred to are no longer in force. 5) Regulations, 2004, Business Tax (Double Taxation Agreement) (No. prescribing all matters which by this Act required to be prescribed, or which are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. C = is the total number of days in the tax year. A business may, with the approval of the Revenue Commissioner, adopt a period of twelve months ending on a date other than 31st December as the tax year of the business (referred to as the "substituted tax year") and that period will be the tax year for the business for each succeeding year, unless with the approval of the Revenue Commissioner, another period of twelve months is adopted as the tax year of the business. The income of the Praslin Development Fund established by the Praslin Development Fund Order 1997. The Minister may, for and on behalf of Seychelles, enter into an agreement with the Government of a foreign country in relation to taxation matters imposed by the laws of that country and for tax compliance purposes of the agreement shall have effect, subject to subsection (4), in relation to tax imposed under this Act. [Seventh Schedule item 11 inserted by regulation 6(b) of, [Eighth Schedule inserted by regulation 7 of. The repealed legislation continues to apply to tax years prior to the tax year in which this Act comes into operation. A business is allowed a deduction (referred to as a "depreciation deduction") for the amount by which the value of the depreciable assets of the business declined during a tax year through use in deriving taxable business income. the fair market value of that trading stock is included in the assessable income of the business and the person acquiring that property is deemed to have purchased it at a cost equal to that value. 4) Regulations, 2006, Business Tax (Double Taxation Agreement) (No. the tax payable by the person is not reduced by any tax credits allowed under this Act. 108 of 2021. Provided that an exemption from tax provided under any written law in force at the commencement of this Act shall continue to have effect. A corporate is considered a resident it was formed in the country. The Minister of Finance, Economic Planning and Trade of Seychelles delivered the National Budget 2022 on 12 November 2021, which reduces business tax rates beginning in January 2022. The return required under subsection (1) shall be in the prescribed form and furnished in the prescribed manner. Measures are verified, to the fullest extent possible, by referencing government sources. the rate of tax referred to in sub-item (i) shall be based on the annual turnover of the business for the previous tax year; the tax shall be payable on or before the 21st day on the month following the month in which the liability falls due; [Seventh Schedule item 7(1) repealed and substituted by regulation 2(a) of. Chapter 2 provides a comprehensive assessment of Seychelles' business tax system and simulates the impact of different business tax reform scenarios, based on business taxpayer microdata. for the proper and efficient administration of this Act. The cost of an asset treated as acquired under. If the estimate made under subsections (3) or (5) of business tax payable by a business for a tax year is less than ninety percent (90%) of the actual business tax liability of the business for the year (the difference is referred to as the "instalment shortfall"), the business is liable for a penalty equal to ten percent of the instalment shortfall. 5) Regulations, 2014, Business Tax (Double Taxation Agreement) (No. In applying subsection (3)(d) or (e) holdings that are attributable to a person from an associate are not reattributed to another associate. The total amount of deductions allowable for a business for training certified by the Seychelles Tourism Board shall be 150% of the actual expenditure incurred. A disposal includes the disposal of a part of an asset. Seychelles IBC - Sterling Trust and Fiduciary Ltd. [Act 28 of 2009; Act 25 of 2010; SI 6 of 2010; SI 27 of 2010; SI 63 of 2010; SI 92 of 2010; SI 7 of 2011; SI 8 of 2011; SI [Seventh Schedule item 7 repealed and item 5 inserted by regulation 6(b) of. If the acquisition of an asset by a person is the derivation of an amount included in assessable income, the cost of the asset is the amount included plus any amount paid by the person for the asset. An entity is liable for tax separately from its members. in relation to an intangible referred to in paragraph (a) or (b) of the definition of "intangible" in, in relation to an intangible referred to in paragraph (c) of the definition of "intangible" in. The amount of the deduction allowed under this section for a tax year shall not exceed the amount of the debt written off in the accounts of the business for that year. 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. Number of Act: 2. For the avoidance of doubts it is stated that the terms of any taxation agreement entered into pursuant to subsection (1), take precedence over the provisions of this Act. 3) Regulations, 2006, Business Tax (Double Taxation Agreement) (No. There is . The income of the Seychelles Fishing Authority established under the Seychelles Fishing Authority (Establishment) Act, 1984. Where a taxation agreement has been entered into under subsection (1) the Minister shall, by regulation, declare that the agreement specified in the regulation has been entered into and the agreement shall have effect in relation to the tax imposed under this Act. 2) Regulations, 2013, Business Tax (Double Taxation Agreement) (No. If a business has entered into a finance lease, the assessable income and allowable deductions of the business are computed on the basis that. If regulations made under this section are of a transitional nature and are made within six months after the commencement of this Act, the regulations may provide that they take effect from the date on which the Act comes into force. 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. Except as otherwise provided in this Act, this section establishes when a business asset is disposed of or acquired for the purposes of this Act. SeyLII is a member of the international Free Access to Law Movement and subscribes to the principles of the Declaration on Free Access to Law. in any other case, the fair market value of the asset at the commencement of the lease. SRC-Seychelles Revenue Commission SRC- Provide Standards Service reflect the aim to deliver professional, timely, effective and efficient services to our clients. 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. 3) Regulations, 2013, [This is the version of this document as it was at 8 November 2017 to 4 January 2018. The income of Seychelles Broadcasting Corporation established under the Seychelles Broadcasting Corporation Act, 1992. [First Schedule repealed and substituted by regulation 2 of, The rates of business tax payable by the owner of a business in respect of the taxable income of a business under section 6 are, in the case of an entity, government body, or a trustee under section 40(5), 25% on the first 1,000,000 of taxable income, and, [First Schedule item 1(a)(ii) amended by regulation 2(a) of, in the case of any other person other than an entity or government body, 0% on the first R 150,000 of taxable income, and, 15% between R150,000 and R1,000,000 of taxable income, and, [First Schedule item 1(b)(ii) amended by regulation 2(a) of, [First Schedule item 1(b)(iii) amended by regulation 2(b) of, in the case of telecommunications service providers, banks, insurance companies, alcohol and tobacco manufacturers, 25% on the first SCR1,000,000 of taxable income; and, [First Schedule item 1(c) inserted by regulation 2(c) of. If a person disposes of a part of an asset, the cost of the asset is apportioned between the part of the asset retained and the part disposed of in accordance with their respective fair market values determined at the time the person acquired the asset. A higher top rate of 33% will apply for certain sectors, including telecommunications, banking, and insurance. Seychelles - OECD Based on Seychelles Business Tax Act 2009, the Seychelles company tax rate (i.e. Business Tax (Amendment) Act, 2020 | Seychelles Legal - SeyLII The income of the National Art Council established under the National Art Council Act, 1982. "variable factory overhead costs" means those factory overhead costs that vary directly with changes in the volume of trading stock manufactured or produced. but does not include an individual, partnership, or trust; the Government of Seychelles, including a department, division, or agency of the Government; a local government authority, council, or similar body in Seychelles; or. by an entity, shall account for business tax on an accrual basis. Business tax accounts for a significant share of tax revenues in Seychelles . In this section, "blended loan" means a loan under which payments by the borrower represent in part a payment of interest and in part a repayment of principal when the interest part is calculated on the principal outstanding at the time of each payment. Subject to this section, the cost of an asset is the sum of the following amounts. 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. An amount that is exempt income is not included in assessable income. an amount is due when the business is entitled to receive it even if the time for discharge of the entitlement is postponed or the amount is payable by instalments; and. prescribing matters as required under this Act, or. Efficiency surveys or management studies; The depreciation rates specified for section 16 are as follows, depreciable assets costing SR100,000 or less 100%, [Third Schedule item 2(a) amended by regulation 4(a) of, computers, research and development expenditure, data handling equipment, and approved environmental machinery 40%, hotels 20% in the first tax year and 10% in each subsequent tax year, business buildings, ships, aircraft and submarine cable systems 4%, [Third Schedule item 2(d) amended by regulation 2(b) of. Government of Seychelles - Business The tax payable under subsection (1) is discharged if the tax has been paid in accordance with this Act. Note: the policy measures are identified through a systematic review of government and business intelligence sources. (Seychelles News Agency) - In a move meant to comply with tax obligations of the European Union (EU), the National Assembly of Seychelles has approved amendments to the island nation's Business Tax Act. 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 assessable income of an entity carrying on a short-term insurance business in a tax year includes the following amounts. Online Business Registration (Seychelles) PR Admin Setting Up Your Business. 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. Any returns, statements, notices or other documents required to be signed by a partnership shall be signed by a partner in the partnership. 4) Regulations, 2013, Business Tax (Double Taxation Agreement) (No. If a depreciable asset is not used, available for use, or held for the whole of the tax year in deriving taxable business income, the depreciation deduction for the year is computed according to the following formula. Business Tax Presumptive Tax Value added Tax Income and non-monetary Tax Immovable property (Foreign own) Tax Taxes by Sector Agriculture Fisheries Tourism Health Education Tax Related Information. The interest income earned by subscribers to the Esmeralda Treasury Bonds issued in 2005. The guides highlight taxes payable, determination of taxable income, foreign tax relief, withholding tax rates and other issues. If an IBC only source foreign income, it is not liable for Seychelles tax on any of its income or profit. 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. the construction on the land of buildings or other structural improvements for the purpose of the storage of animal feed in the course of carrying on primary production on the land. Seychelles tax system - taxation of Seychelles companies and 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. 7) Regulations, 2012, Business Tax (Double Taxation Agreement) (No. The income of the Seychelles Pension Fund established under the Seychelles Pension Act, 2005. 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%. Subject to subsections (3) and (4), if tax has been withheld under this Division from income derived by a person, the person is allowed a tax credit for that tax against the tax due by the person on the taxable income of the person for the tax year in which the tax was withheld. 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. Download - Seychelles Revenue Commission Notwithstanding that the gross gaming revenue of the business of a casino is assessable income in terms of any other provisions of this Act, business tax at the rates specified in the First Schedule is in addition levied on the gross gaming revenue of the business of a casino under this section. Subject to subsection (3), if an amount is in a currency other than Seychelles rupees, the amount shall be translated to Seychelles rupees at the Central Bank of Seychelles published mid-exchange rate applying between the foreign currency and Seychelles rupees on the date the amount is taken into account for the purposes of this Act. In determining whether the taxpayer is seeking to split income through a partnership or trust, the Revenue Commissioner shall consider the value given by the other party to the partnership or trust. Subject to this Act, the tax imposed under sections. 2) Regulations, 2005, Business Tax (Double Taxation Agreement) (No. The business tax, or the corporate tax, is levied on the company's income. If an intangible is not used, available for use, or held for the whole of the tax year in deriving taxable business income, the amortisation deduction for the year is computed according to the following formula. Regarding business tax rates, the budget provides for the top rate to decrease from 30% to 25% for business profits above SCR 1 million (USD 74,000). interest payable under a loan, if the Minister is of the opinion that the business carried on by the class or category of person, or loan funds, has assisted or will assist in the economic development of Seychelles. If, in a tax year, a depreciable asset is used partly to derive taxable business income and partly for another purpose, the amount of depreciation allowed as a deduction for the year is reduced by the proportion of the non-business use.
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