• Seychelles Tax System

  • TAX RESIDENCY

    Tax Residency

    A company is considered to be tax resident in Seychelles if it is incorporated in Seychelles or has its central management and control in Seychelles or if its voting power is controlled by shareholders who are resident in Seychelles.

    Taxable Basis

    Both Seychelles tax resident companies and foreign companies are taxed only on income generated in Seychelles.

  • TAX ADMIN

    Taxable Period

    The taxable period for a company in Seychelles is the calendar year i.e. from 01/01/ to 31/12.

    Tax Returns

    Every company needs to submit an annual tax return by 31 March of the following year.

    Consolidated returns are not allowed in Seychelles.

    Tax Assessments

    There is no fixed date for the issue of assessments.

  • CORPORATION TAX

    Corporation Tax

    Corporation tax (business tax) is levied on taxable profits at 25% on the first SCR 1,000,000 and 30% on the remainder except for some financial institutions, telecom companies, alcohol producers, etc at 33%.

    International Business Companies (IBCs) are exempt from corporation tax in Seychelles.

    Special License Companies (CSLs) are taxed at a flat rate of 1.5% on their worldwide income.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income from foreign investments is taxed at the following rates:

    • International Business Companies (IBCs) at 0%
    • Special License Companies (CSLs) at 1.5%
    • Other companies (business tax) at 25% on first SCR 1,000,000 and 30% on remainder except for some financial institutions, telecom companies, alcohol producers, etc at 33%.

    However, a credit for tax suffered abroad can eliminate this corporation tax.

    Dividends from Local Investments

    Dividend income from local investments is taxable at 15%.

    Withholding Tax on Dividends

    The withholding tax on dividend payments to foreign recipients is 15%. IBCs and SCLs are not subject to withholding tax on dividend payments to foreign recipients.

    There is no withholding tax on dividend payments to local recipients.

  • INTEREST

    Interest Income

    Interest income is taxable under corporation tax in Seychelles at 10%. However, interest derived from financial institutions is exempt.

    Interest Expense Deductibility

    Interest payments are generally tax deductible in Seychelles as long as they are incurred for the generation of income.

    Withholding Tax on Interest

    The withholding tax on interest payments to foreign and local recipients is 10%. IBCs and SCLs are not subject to withholding tax on dividend payments to foreign recipients.

  • ROYALTIES

    Royalty Income

    Royalty income is taxable under corporation tax in Seychelles.

    Royalty Expense Deductibility

    Royalty payments are generally tax deductible in Seychelles as long as they are incurred for the generation of income.

    Withholding Tax on Royalties

    The withholding tax on royalty payments to foreign and local recipients is 15%. IBCs and SCLs are not subject to withholding tax on dividend payments to foreign recipients.

  • TAX LOSSES

    Ordinary Tax Losses

    Ordinary tax losses can be carried forward for 5 years.

    Ordinary tax losses cannot be carried back.

    Group Relief

    There are no group relief provisions in Seychelles.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The gain on the disposal of a Seychelles company by its foreign corporate shareholder is exempt from tax in Seychelles.

    Capital Gains

    Capital gains are not taxable in Seychelles.

    Capital Losses

    Capital losses are not tax deductible in Seychelles since capital gains are not taxable.

  • PARTNERSHIPS

    Partnership Profits

    Partnerships are treated as transparent entities for tax purposes, which means that their profits ate taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in Seychelles.

    There is no remittance tax on profits transferred by a Seychelles Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    There is no stamp duty in Seychelles.

  • CAPITAL DUTY
  • GST

    Seychelles currently levies Goods and Services Tax (GST) which is similar VAT. GST was replaced by VAT as of 1 January 2013.

    GST Taxable Transactions

    GST will be levied on the supply of goods.

    GST Standard Rate

    The standard GST rate is 15%.

    GST Reduced Rate(s)

    The supply of goods by an individual farmer or fisherman and public utilities is zero-rated.

    GST Exempt Transactions

    Educational services, health services, financial services and goods of first necessity are exempt from GST.

    GST Registration Threshold

    The registration threshold is SCR 2,000,000.

    GST Filing & Payment

    Payment of GST is made monthly.