The business structure in Seychelle has undergone a major change with the reviewal of the Business Tax Act and International Trade Zone Regulations with new tax rates. Early this year, Ms Seylina Verghese, the Director General for Taxes and Sectoral Policy, and Mr Marcus Elizabeth from the Financial Services Authority have jointly released a communiqué to the media about the amendments in the different laws regulating businesses in Seychelles. Read the full press communiqué here.
Business tax act revision
As of January 2022, businesses will have to abide by the new tax rates imposed on companies to meet the designed structural budget implementation set up by the Honorable Minister Naadir Hassan. During his budget speech before the National Assembly, the Honorable Minister mentioned that business tax rates would drop from 25% to 15% on profits of up to R1 million and from 30% to 25% on profits of above R1 million.
The revised tax plan will be implemented in different sectors such as fisheries, casinos, international corporate service providers, medical services, and other businesses that are listed on the Seychelles securities exchange. The Honorable Minister added that the agricultural sector would also benefit from these new tax rates as the concerned departments will receive a benefit period on tax payment for the next three years starting from 2021. After this given period, there will be a revision on the tax modalities that will be applicable. However, fishermen and people in the fisheries section will still get the benefit of the current tax rate facilities setup.
New tax rates for allowable deductions
During the last five years, capital investment has seen an advanced deceleration and depreciation of rates ranging up to 145%, excluding buildings investment. Thus, the government has reviewed this situation in the new tax rates and reduced the capital percentage tax from 145% to 100%. In cognizance of that, graduate employees will be liable to only a 125% tax deduction instead of 200%. This setup will also be applicable for students’ salaries from professional centres whereby their tax rate will be reduced from 150% to 125%.
Immovable property tax (IPT) rates
This section of the bill focuses on foreigners who own residential properties in the country. They will have a new tax rate of 0,25% payable under the section of IPT upon the valuation assessment by the chief valuation officer. These revised tax rates will propagate fairness and equality of payments for all employees.
Nobel Capital has the experience and expertise to help business owners abide by the changes. Contact us for more information.