Seychelles nationals gainfully employed in the Seychelles are subject to income tax at the following rates on gross emoluments from such employment:
- Up to SCR8,555.50: 0%
- From SCR8,555.50 to SCR10,065.29: tax rate is calculated using the following formula:
0.15 – [SCR8,555.50 – (Gross emoluments x 0.85)] Gross emoluments
- Above SCR10,065.29: 15%
Non-Seychelles nationals gainfully employed in the Seychelles are subject to tax at a rate of 15% on gross emoluments from such employment.
Income subject to tax
Employment income. Under the Income and Non-monetary Benefits Act, 2010, individuals employed in the Seychelles are subject to tax at the rates mentioned above on their gross emoluments. Gross emoluments consists of cash remuneration received by an employed individual and includes salaries, wages, cash allowances, directors’ fees and work condition supplements. Non-monetary benefits, such as accommodation, utilities and in-house benefits, provided by employers to employees in the course of an employment contract are subject to tax at a rate of 20% of the taxable value of the non-monetary benefits. Employers bear this tax. The taxable value of the non-monetary benefit is reduced to the extent that the benefit is used by the employed person in the performance of his or her duties.
Self-employment and business income. Self-employed individuals carrying on a trade, business or profession are subject to business tax on their taxable profits. Expenses are deductible to the extent they are incurred in deriving taxable business income. For small businesses with annual turnover below SCR1 million, Presumptive Tax is payable at a rate of 1.5% of turnover.
Investment income. Withholding tax is imposed on dividends paid to nonresidents at a rate of 15%. The withholding tax is considered a final tax. Dividends paid to residents are not subject to withholding tax and are exempt from tax at the level of the recipient.
A withholding tax applies to interest paid to residents and nonresidents other than banks, finance companies and other enterprises that are principally engaged in the business of lending money. The withholding tax is considered to be a final tax for nonresidents. The withholding tax rate ranges from 5% to 33%.
No withholding tax is imposed on royalties paid to residents. The rate is 15% with respect to royalties paid to nonresidents for the following:
- The use of, or right to use, copyrights, patents, designs, models or trademarks
- The use of secret formulas, processes or know-how
- Scientific, industrial or commercial knowledge, information or services
- The receipt of, or right to receive, visual images or sounds transmitted by satellite optic, optic fiber or similar technology
- The supply of technical, industrial, commercial or scientific equipment
- The use of, or right to use, industrial, commercial or scientific equipment
Capital gains. Seychelles does not impose a capital gains tax.
Estate and gift taxes
No estate or gift tax is imposed in Seychelles. However, transfers of immovable property or shares are generally subject to stamp duty at a rate of 5%. However, transfers as a result of a divorce settlement and transfers by a parent to a child are exempt from tax. A registration fee of SCR100 is charged in both cases.
Seychelles Pension Fund
Employees in Seychelles must contribute monthly to the Seychelles Pension Fund, which provides for employees’ welfare and retirement. The contributions are imposed on all emoluments provided by employers to employees during a month. The social contribution rate is 2% for both employees and employers. A minimum contribution of SCR50 must be made for an employee. However, an employee is free to make a contribution of greater than 2% of his or her salary. Contributions to the Seychelles Provident Fund are not required for expatriates.
The rate of contribution for self-employed persons is 4% of gross salary or SCR174, whichever is greater. If no salary is declared, the pension contribution is 4% of average gross yearly profit declared for the business. In the event of a loss-making business, the contribution is the greater of SCR174 or 4% of the prevailing minimum wage per month for 45 hours a week, which is currently SCR4,339 per month.
Tax filing and payment procedures
Business tax returns in the prescribed form must be filed within three months after the end of the calendar year. Business tax returns are required regardless of any tax liability or loss.
Employers must withhold pension contributions and payroll income tax from employees’ emoluments. Individuals with self-employment or business income must make monthly provisional tax payments based on their income for the preceding tax year.
Double tax relief and tax treaties
Seychelles has entered into double tax treaties with the following countries.
|Barbados||Isle of Man||South Africa|
The agreements are based on the model treaties of the Organisation for Economic Co-operation and Development (OECD) and the United Nations (UN).
Seychelles has signed double tax treaties with Belgium, Bermuda, Kuwait, Lesotho, Luxembourg, Malawi and Sri Lanka, but these treaties have not yet been ratified.
Visas are not required for entry into Seychelles, regardless of the nationality of the individual.
A visitor’s permit is issued on arrival in Seychelles to a person who comes for the purpose of holiday, pleasure, or visiting friends or family. A visitor’s permit is initially valid for the period of the visit, with a maximum duration of one month. This period can be extended but can be subject to a fee if it exceeds three months.
For business visits (for example, to attend business meetings, conferences or seminars), a letter to the immigration authorities informing them of such visit is required to avoid any problems on arrival at the airport.
Gainful occupation permits
A gainful occupation permit allows the holder to be gainfully occupied in Seychelles.
Applications for gainful occupation permits must be submitted at least two weeks before the employee is due to begin work. The employee may not enter Seychelles for the purpose of taking up employment before obtaining the gainful occupation permit.
A processing fee of SCR1,000 (USD75) and the fee for the duration of the permit, which equals SCR6,000 (USD450) per year or part thereof, are payable in advance and must accompany the application.
The holder of a residence permit is not allowed to be gainfully occupied in Seychelles. If an individual wants to work as an employee or engage in a business or profession, he or she must obtain a Gainful Occupation Permit.
A fee of SCR1,000 (USD75) is payable for processing of the application. The fee for a residence permit of five years is SCR150,000 (USD11,169) for the principal applicant and SCR75,000 (USD5,584) for the spouse if applied for at the same time.
The holder’s minor dependents can be endorsed on the permit. The fee for the holder’s minor dependents is SCR25,000 (USD1,861) per dependent.