Income tax in Seychelles

December 19, 2017

INDIVIDUAL TAXATION

The Seychelles have territorial taxation and only locally-sourced income is taxed.

An individual is considered resident if present in the Seychelles for more than 180 days in any one tax year. But the resident/non-resident distinction is of little importance, and only affects dividends, interest, and royalties, which are tax-bearing if payable to nonresidents.

INCOME TAX

Income is classified in two major categories: (1) business income and (2) earned income or income and non-monetary benefits.

Business Income Tax

Business tax is levied on business income less income-generating expenses. Income, except earned income, may be considered as business income and will be taxed at progressive rates.

BUSINESS TAX FOR INDIVIDUALS 2012-2016

TAXABLE INCOME, SCR (US$) TAX RATE
Up to 150,000 (US$11,111) 0%
150,000 - 1,000,000 (US$74,074) 15% on band over US$11,111
Over 1,000,000 (US$74,074) 33% on all income over US$74,074
Source: Global Property Guide

BUSINESS TAX FOR INDIVIDUALS 2011

TAXABLE INCOME, SCR (US$) TAX RATE
Up to 150,000 (US$11,111) 0%
150,000 - 1,000,000 (US$74,074) 18.75% on band over US$11,111
Over 1,000,000 (US$74,074) 33% on all income over US$74,074
Source: Global Property Guide

RENTAL INCOME
Rental income on residential property is considered as business income and is subject to business tax. Repairs, expenses incurred relating to lease documents, and other expenses in producing rental income are deductible against the gross rental income.

Note that an entity with a Certificate of Approval under the Investment promotion Act 1994 may be exempt from part of or all of the Business Tax, or may have special deductions or tax credits.

CAPITAL GAINS
There is no capital gains tax in the Seychelles.

PROPERTY TAX

There are no property taxes in the islands.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are subject to corporate income tax, which are levied at progressive rates. Taxable income is calculated as gross income less income-generating expenses.

BUSINESS TAX FOR CORPORATIONS

TAXABLE INCOME, SCR (US$) TAX RATE
Up to 1,000,000 (US$74,074) 25% on band over US$74,074
Over 1,000,000 (US$74,074) 33% on all income over US$74,074
Source: Global Property Guide

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.