Seychelles Tax Guide

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.

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 31^st 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 31^st 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.

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.

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 21^st of April
  • Q2 Apr-June: Due date 21^st July
  • Q3 Jul – Sep: Due date 21^st October
  • Q4 Oct – Dec: Due date 21^st January of the following year
    
    

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 21^st of the following applicable month.

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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.