Taxes in Seychelles

The Seychelles Revenue Commission (SRC), led by the Commissioner General, administers the main national taxes. Customs matters are handled through the Customs Division. The Registrar General and the Ministry of Land Use and Housing have roles in property-related taxation and registration. The main legal bases include the Revenue Administration Act 2009, Business Tax Act 2009, Income and Non-Monetary Benefits Tax Act, Value Added Tax Act 2010, Excise Tax Act and Immovable Property Tax Act 2019. Seychelles traditionally applies a territorial approach. Seychelles-source income generally includes income from activities conducted in Seychelles, goods situated in Seychelles or rights used in Seychelles. Since 16 September 2021, covered companies and economic-substance requirements can affect passive income earned by non-resident entities. Cross-border cases may also involve tax treaties, tax information exchange agreements, CRS and FATCA reporting, country-by-country reporting and transfer-pricing rules. Employment income is usually taxed through employer withholding. For a Seychelles citizen, the current bands are 0% on monthly taxable emoluments up to SCR 8,555.50, 15% on the portion from SCR 8,555.51 to SCR 10,000, 20% on the portion from SCR 10,000.01 to SCR 83,333, and 30% on the portion above SCR 83,333. The corresponding bands for a non-citizen are 15% up to SCR 10,000, 20% on the portion from SCR 10,000.01 to SCR 83,333 and 30% above SCR 83,333. Employers generally withhold payroll tax monthly and pay it by the 21st of the following month. They also submit the relevant payroll-withholding statement, simplified statement or domestic-worker filing. Payroll XML can be sent to pit@src.gov.sc; employers with fewer than 10 employees may also have an in-person filing option. Non-monetary benefits are generally taxed through the employer at 15% of the assessed value. Schedule 4 provides valuation rules, and some benefits are excluded. A non-mandatory pension contribution is taxed at 0% up to 8% of salary; the excess is taxed at 15%. Specific rules apply to stevedores, whose employment income may be taxed at 10%, and to specific-project emoluments, which may be taxed at 3%. Business tax is generally calculated from assessable income after allowable deductions. For sole traders and partnerships, the rate is 0% up to SCR 102,666, 15% from SCR 102,666.01 to SCR 1,000,000 and 25% above SCR 1,000,000. For companies and other entities, the rate is 15% on the first SCR 1,000,000 and 25% on the remainder. Telecommunications, banks, insurance businesses and alcohol or tobacco manufacturers may face 25% on the first SCR 1,000,000 and 33% on the remainder, subject to the applicable sector schedule. Business tax commonly applies when annual turnover exceeds SCR 1,000,000, but the applicable classification and sector rules need checking. A small business with annual turnover below SCR 1,000,000 may qualify for presumptive tax. This is generally 1.5% of annual turnover, with no deduction for business costs. The business files a simplified annual return and pays by 31 March. Voluntary monthly advance payments through a PAYE scheme may be available. Businesses generally file a business-tax return by 31 March, including a NIL return when there is no taxable income or no tax due. A substituted tax year generally requires filing within three months after the accounting period ends. Tax-agent arrangements can create later deadlines such as 30 June, 31 July or 31 October. Value added tax (VAT) applies to taxable domestic supplies and imports. The standard rate is 15%; exports and legally zero-rated items can have a 0% rate. Exempt supplies include certain pharmaceuticals, infant formula, nappies and basic necessities, as well as education, health and financial services. A business generally has compulsory VAT registration when taxable supplies reach SCR 2,000,000. Voluntary registration is available for taxable supplies from SCR 100,000 to below SCR 2,000,000 under the rules in force since 1 January 2025. The application is generally due within 14 days after the registration obligation arises. SRC due diligence can examine the taxable activity, fixed place of business, records, cash-register compliance and bank account. Compulsory VAT returns are generally monthly and due by the 21st; voluntary registrants generally file quarterly by the 21st. VAT payable is output VAT minus eligible input VAT. Credits and refunds can be available. Import VAT applies to commercial and private imports whether or not the importer is VAT-registered, and customs calculation generally uses the CIF value plus customs duty and any applicable excise tax. A visitor VAT refund can apply to taxable goods, not services, when the seller is VAT-registered and issues a VAT invoice to the claimant. Customs validates the claim at departure. The minimum claim is SCR 150, and payment can be made in USD, EUR, GBP or SCR. Imports can attract customs duty, VAT, excise tax and an import levy. Excise commonly covers alcohol, cigarettes, motor vehicles, fuel and lubricants. Manufacturers and warehouses dealing with excisable goods can have registration, return and payment duties without a turnover threshold. Excise returns and payments are generally due by the 21st of the following month. A sugar tax of SCR 4 per litre applies to drinks containing more than 5 grams of sugar per 100 millilitres. Exports can be excise-free when the legal conditions are met. Sector-specific taxes include Tourism Marketing Tax, Accommodation Turnover Tax and the Tourism Environmental Sustainability Levy. Tourism Marketing Tax generally applies at 0.5% to listed tourism and related businesses with turnover of at least SCR 1,000,000, including hotels, guesthouses, self-catering accommodation, restaurants, air and ferry services, boat and yacht charters, car hire, diving and water sports, travel operators, guides, equestrian businesses, banks, insurers, telecommunications businesses, Class 1 building contractors and casinos. Accommodation Turnover Tax applies at 2% to listed accommodation businesses, yachts and cruise ships with turnover of at least SCR 100,000,000; it is not deductible as a business-tax expense. From 1 January 2026, the Tourism Environmental Sustainability Levy is generally SCR 75 per person per night for establishments with 25 to 50 rooms and SCR 100 for establishments with more than 50 rooms, yachts and island resorts. Small establishments with 1 to 24 rooms are excluded. Seychelles citizens and residents, airline and yacht crew, and children aged 12 or under are exempt. The accommodation business collects the levy, issues the charge on the bill, keeps a register and generally files and pays by the 21st of the following month. Records must be retained for seven years. Residential Rent Tax applies to property rented exclusively for residential purposes. The rate is generally 3% of gross rent, with a monthly return and payment by the 21st of the following month. Withholding tax generally applies at 15% to payments to non-residents for dividends, interest, royalties, natural resources and technical services. The rate can be 5% for non-resident entertainers or sportspeople, 33% for managerial fees paid to a non-resident through a financial institution and 5% for insurance premiums paid to a non-resident. Withholding tax is generally payable by the 21st of the following month and is generally final tax. Seychelles has no separately evidenced new capital-gains, dividend or inheritance tax in the supplied research; withholding tax can still apply to relevant payments. Immovable Property Tax generally applies to property owned by non-Seychellois at 0.5% of market value per year. Payment is due by 31 December. Registration is made with the Registrar General, with an annual four-month registration window and valuation generally every five years. Commercial and industrial property is exempt. Residential property can be exempt when the owner is married to a Seychellois, and a first-time residential owner who acquired the property after 1 January 2020 may apply for a one-year exemption. Values stated in USD, EUR or GBP are converted into SCR using the Central Bank of Seychelles mid-rate. Individuals and businesses generally obtain a Tax Identification Number (TIN). SRC materials refer to 28 days after trading begins, while the FAQ and form refer to 14 days. Using the shorter period is the safer approach unless SRC confirms a different deadline in writing. Employee registration is generally due within seven days. A complete business registration can produce a TIN within about 24 hours. Changes are generally reported within 28 days, while suspension or restart is generally reported within 14 days and permanent deregistration within 28 days. Tax records must generally be kept for seven years in English, French or Creole. Seychelles uses self-assessment. Taxpayers submit the relevant return and Tax Payment Slip, with dedicated forms replacing the former BAS process progressively from 2024. Electronic filing is legally recognised under the Revenue Administration (Electronic Filing of Documents) Regulations 2025, although the current portal and live filing status may vary. Bank-transfer payments should be supported by proof sent to banktransfer@src.gov.sc. From 1 April 2026, an Acknowledgment Notice replaces the Letter of Assessment. A self-assessment is treated as a Notice of Assessment when filed; the notice confirms receipt and does not replace the taxpayer's duty to retain copies and supporting records. From 3 August 2026, SRC no longer provides copies of returns that were already filed when requested, so taxpayers should archive their own submissions. Taxpayers can appoint a tax agent or authorised representative for interviews. During an audit, the SRC can request records and documents and access relevant premises. Audit notices are typically issued five working days in advance. An objection is generally filed online at objections@src.gov.sc within 90 days from the relevant notice, subject to possible extension under section 15(3). A rejected objection can generally be appealed to the Revenue Tribunal within 30 days. A private ruling requested in writing from the Commissioner General can bind the Commissioner when the taxpayer gives complete disclosure. A public ruling binds the Commissioner but not the taxpayer, while general guidance is not binding. A Tax Clearance Certificate comes from the SRC, is valid for the relevant tax year and costs SCR 100. The SRC can approve instalment arrangements for tax debt. New debts generally receive plans lasting one to three months, and a plan usually cannot exceed six months. After approval, a company with debt above SCR 1,000,000 may receive up to 12 months. Default can make the remaining balance immediately due. A Voluntary Disclosure Programme has operated since 1 June 2026 for disclosures made before audit or enforcement. It can cover errors, unregistered businesses or residential rent, foreign income or assets and foreign companies managed or controlled in Seychelles, but it does not cover refund claims and the same issue and tax year cannot normally be disclosed repeatedly. For international tax matters, the SRC acts as the competent authority. Seychelles participates in tax treaties and tax information exchange agreements, exchange of information on request, CRS and automatic exchange of information for reporting financial institutions, FATCA reporting for the United States and country-by-country reporting under the CbC MCAA. CRS and country-by-country reports are generally due electronically by 30 June. Controlled transactions must follow the arm's-length principle. A transfer-pricing schedule accompanies the tax return when applicable. Documentation is generally required for controlled transactions where annual turnover exceeds SCR 1,000,000, and additional thresholds can apply when controlled transactions exceed 10% of turnover or SCR 50,000,000. A multinational enterprise with consolidated turnover above EUR 100,000,000 can need a master file. Requested documentation is generally supplied within 21 days. Electronic invoicing is planned for the second half of 2026, beginning on a phased and risk-based basis with larger VAT-registered businesses. VAT receipt duties and sanctions are also planned. A digital tax has not been introduced; current work concerns feasibility and legal review. A review of super-yacht VAT rules has been announced. A temporary 2026 tourism relief can provide a three-month deferral for 2025 business or presumptive tax when the return is filed on time, together with possible PAYG variation and faster refunds; it is not a permanent rule. Rates, thresholds, exemptions and deadlines should be checked against the applicable SRC notice and legislation at the time of filing.