Business Environment

Seychelles: Business Environment

Accounting Rules

Tax Year: The tax year follows the calendar year, from January 01 to December 31.
Accounting Standards: Seychelles do not reuire the use of International Financial Reporting Standards (IFRS).
Accounting Regulation Bodies: Seychelles Business Register
Financial Services Authority Seychelles
Accounting Reports: In Seychelles, companies are mandated to keep accounting records that enable the financial position of the legal entity to be determined with reasonable accuracy at any time and allow for financial statements of the legal entity to be prepared.
Companies shall retain all accounting records for seven years from the date of completion of the transactions to which they relate.
Publication Requirements: Companies must provide annual reporting of their accounting records to their registered office in the jurisdiction; while large companies (with annual turnover above SCR 50 million) and non-large non-holding companies must provide an annual financial summary within six months from the financial year-end.
Professional Accountancy Bodies: Association of Seychelles Accountants
Certification and Auditing: Office of the Auditor General of the Seychelles

Financial Services Authority Seychelles
Accounting News

Tax Rates

Consumption Taxes

Nature of the Tax

Value Added Tax (VAT)

Tax Rate

15% (standard rate).
Exports are zero-rated.

Reduced Tax Rate

0% standard rating for goods and services consumed in Seychelles
Exempt supplies include goods such as pharmaceutical products, infant formulae, pampers and certain basic necessities (e.g. rice, lentils, etc.) and services such as education, health and financial services.

Other Consumption Taxes

Stamp duty may also be payable on certain other transactions.
Excise taxes are levied on several items.

Corporate Taxes

Company Tax

Tax Rate For Foreign Companies

Foreign companies are taxed at the same rates as national ones.

In Seychelles, profits earned by Seychelles companies through permanent establishments located overseas are not subject to taxation. However, profits earned through foreign activities that do not establish a permanent presence abroad are taxable in Seychelles.

If a Seychelles company has sufficient economic substance in the country, it can receive tax exemption on passive income sourced from foreign countries. Nevertheless, income generated from IP rights originating from foreign sources will be taxable in Seychelles, with the exception of income derived from patents (or similar rights) linked to research and development (R&D) conducted within Seychelles.

Capital Gains Taxation

Capital gains are not subject to tax in Seychelles.

Main Allowable Deductions and Tax Credits

Deductions are available for losses and outgoings; repairs; loss on property acquired for profit making; depreciation; bad debts; payment to shareholders, directors, associated persons and relatives; subscriptions to associations; contributions to the Seychelles Pension Scheme; gifts etc.
Training costs incurred by a business for its employees can be deducted at a rate of 200% of the expense; and a 125% deduction applies to salaries of employees that graduated from professional centres.
The rates of depreciation allowable on capital investments, other than buildings, for farming and fisheries and for tourism operators (hotels, restaurants, transport, tour operators, travel agents, etc.) are set as follows:

30% in year 1
25% in year 2
20% in year 3
15% in year 4
10% in year 5.

Other Corporate Taxes

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.
Residents buying immovable property pay stamp duty at the rate of 5% of the transaction amount, while special rules apply for non-residents. Stamp duty may also be payable on certain other transactions.
A corporate social responsibility tax is charged to companies with a turnover of at least CSR 1 million, payable monthly at the rate of 0.5% of the revenues.
A Tourism Marketing Tax (TMT) was introduced in January 2013, at varying rates.
The social security contribution rate payable by the employer is 6% of the employee's monthly gross earnings. The employer is required to deduct this amount from the employee's salary and remit it to the Seychelles Pension Fund.

Other Domestic Resources

Seychelles Revenue Commission

Country Comparison For Corporate Taxation

	Seychelles	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	29.0	36.6	10.6	9.0
Time Taken For Administrative Formalities (Hours)	85.0	284.8	175.0	218.0
Total Share of Taxes (% of Profit)	30.1	47.3	36.6	48.8

Source: Doing Business - Latest available data.

Individual Taxes

Tax Rate

Personal income tax	Monthly bracket - Citizen employee
SCR 0 to 8,555.50	0%
SCR 8,555.51 to 10,000	15%
SCR 10,000 to 83,000	20%
Above SCR 83,000	30%
	Monthly bracket - Non-citizen employee
SCR 0 to 10,000	15%
SCR 10,000 to 83,000	20%
Above SCR 83,000	30%
Non-monetary benefits	20%

Allowable Deductions and Tax Credits: The first SCR 8,555.5 per month are zero-rated for citizen employees.
Special Expatriate Tax Regime: Foreign individuals do not enjoy the tax-free bracket available for citizens (SCR 0 to 8,555.50).

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: Seychelles Revenue Commission
Withholding Taxes: Dividend, interest, royalty, natural resource amount, or technical ‎services fee paid to a non-resident: 15%
Dividends paid by a resident incorporated entity to a resident incorporated entity‎ or paid by a resident incorporated entity to a resident unincorporated entity: 0%
Bilateral Agreement: Seychelles and Mauritius concluded a Double Taxation Agreement.

Sources of Fiscal Information

Tax Authorities: Seychelles Revenue Commission
Other Domestic Resources: Seychelles Investment Board

Intellectual Property

National Organisations: Intellectual Property Office c/o The Registrar General's Office Registration Division Department of Legal Affairs President's Office.
Click here for further information.
Regional Organisations: Seychelles is a member of the African Intellectual Property Organization.

Legal Framework

Equal Treatment of Nationals and Foreigners: The constitution specifically provides equal protection to all persons. Foreign nationals can, to a large extent, expect an impartial trial from the country’s judicial system. The judiciary is independent, and the domestic legal system is generally non-discriminatory and transparent.
The Language of Justice: The national languages of Seychelles are Seychellois Creole, English and French.
The official language of the courts in Seychelles is English. Court interpreters are present in all Palais de Justice Courtrooms.
Sources of the Law and Legal Similarities: Mauritius draws legal principles from both French civil law and British common law traditions: while its substance is based on the Napoleonic Code of 1804, the procedures draw from the English system. Commercial and contractual law is also based on the French civil code.
The constitution is the supreme law of the land and provides for the fundamental rights and freedoms of citizens, the structure and powers of government, and the system of justice.
The legislation refers to laws passed by the National Assembly or regulations made by the President under the authority of an Act of Parliament. It includes primary legislation such as Acts of Parliament and secondary legislation such as Regulations and Orders.
Furthermore, as Seychelles' legal system is also based on the English common law system, the decisions of the courts of Seychelles, as well as those of the English courts, are persuasive.
Finally, customary law is recognized and enforced by the courts in the country, provided that it is not repugnant to the principles of natural justice, equity, and good conscience.
Checking National Laws Online: Seychelles Legal Information Institute (SeyLII)
Office of the Attorney General

Standards

National Standards Organisations

Seychelles Bureau of Standards (SBS)

Integration in the International Standards Network

The Seychelles Bureau of Standards (SBS) is a correspondent member of the International Organization for Standardization (ISO). The SBS is a member of the following organizations:

African Organization for Standardization (ARSO)
African Electrotechnical Standardization Commission (AFSEC)
International Electrotechnical Commission (IEC)
International Telecommunication Union (ITU)
International Laboratory Accreditation Cooperation (ILAC)
International Accreditation Forum (IAF)
Pan African Quality Infrastructure (PAQI).

Classification of Standards

In Seychelles, the standards classification system is based on the prefix "SLS," which stands for Seychelles Standard. The prefix is followed by a four-digit number that represents the specific standard.

Online Consultation of Standards

Seychelles Bureau of Standards catalogue

Certification Organisations

Seychelles Bureau of Standards (SBS)

Business Practices

General Information
Opening Hours and Days: In the Seychelles, the standard working hours for most shops and offices are from Monday to Friday, 8:30 a.m. to 4:30 p.m., with an hour-long break for lunch. Some shops may close earlier on Saturdays, and many businesses are closed on Sundays. However, the operating hours of individual shops and offices may vary depending on the industry, location, and business owner's preference.
The normal banking hours are between 8.30 am to 12.30 pm, Monday to Friday.

Public Holidays

New Year’s Day	January 01
New Year Holiday	January 02
Good Friday	April 07
Holy Saturday	April 08
Easter Monday	April 10
Labour Day	May 01
Corpus Christi	June 08
Constitutional Day	June 18
Independence (National) Day	June 29
Assumption Day	August 15
All Saints Day	November 01
Immaculate Conception	December 08
Christmas Day	December 25

Holiday Compensation: Except in an essential service, an employer shall not require a worker, other than a shift-worker or a watchman, to work on holidays.
A worker who works on a holiday is entitled to double-pay for that day, or to an alternative holiday, at the option of the employer.

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