In Seychelles, employers have several tax obligations related to their employees' income and non-monetary benefits.

Income Tax Withholding

Employers must withhold income tax from employees' salaries and pay it to the Seychelles Revenue Commission (SRC) within 21 days of the following month. If an employee has multiple employers, only the primary employer withholds income tax. The primary employer is determined by the highest gross emolument or most working hours at that employer. Withholding tax rates are progressive and follow the same structure as the income tax brackets.

Payroll Reporting

Employers are required to electronically lodge their monthly payroll with the SRC, regardless of whether the salaries are taxable or not. Additionally, employers are responsible for keeping the SRC updated on their employees' tax status through the employee status form.

Non-Monetary Benefits Tax

Employers are liable to pay a 15% tax on the value of non-monetary benefits provided to employees, such as company cars or housing allowances. Specific exemptions may apply. For more details, refer to Schedule 4 of the Income and Non-Monetary Benefit Tax Act.

The Income and Non-Monetary Benefits Tax (INMBT) is a progressive income tax based on an employee's earnings and any non-monetary benefits received. This tax applies to all employed persons earning income in Seychelles. The calculation of this tax is based on monthly emoluments, which are subject to a progressive tax rate. This means the rate increases as your pay increases. Non-monetary benefits are also taxed at a rate of 15% of the benefit's value.

For instance, if an employee earns SCR 20,000 per month, the tax calculation would refer to the First Schedule of the Act.

Seychelles National Provident Fund (SNPF)

The Seychelles National Provident Fund (SNPF) is a mandatory social security contribution. All employed Seychellois citizens and those on work permits are eligible for this contribution. The calculation for this contribution is that employees contribute 3% of their gross salary to the SNPF.

It's important to note that employers are responsible for withholding INMBT and SNPF contributions from employee salaries and remitting the withheld taxes and contributions to the Seychelles Revenue Commission (SRC) on a monthly basis.

In Seychelles, the standard VAT rate is 15%. This rate applies to most supplies of goods and services within the country. Unless specifically zero-rated or exempt, VAT at the standard rate is charged on the value of services provided in Seychelles by a taxable person as defined in the Value Added Tax Act, 2010.

Zero-Rated Services

Zero-rated services have a 0% VAT rate, but input tax can still be claimed. These services in Seychelles predominantly focus on exports and international services. Examples include international transport of passengers and goods, services directly related to exported goods, and services supplied to a non-resident outside of Seychelles.

Exempt Services

Exempt services are outside the scope of VAT. No VAT is charged, and no input VAT can be claimed. Key exempt services in Seychelles include financial services, educational services, and health services.

VAT Filing Procedures

Businesses with an annual turnover exceeding SCR 5 million are required to register for VAT with the Seychelles Revenue Commission (SRC). VAT returns are generally filed on a monthly basis using the SRC's online portal. Any VAT due must be remitted to the SRC along with the VAT return.

Seychelles offers a variety of tax incentives to attract investment and stimulate business growth across various sectors. Here's a breakdown of some key benefits and how to potentially qualify for them:

Reduced Corporate Tax Rates

While the standard corporate tax rate in Seychelles is a two-tier system of 15% for profits below SCR 1 million and 25% above (as of 2022), some sectors enjoy even lower rates.

Here are some examples:

• International Trade Zones (ITZs): Companies operating within designated ITZs are completely exempt from business tax.

Important Note: The availability and specifics of tax incentives are subject to change. It's crucial to consult with the Seychelles Revenue Commission or a qualified tax professional for the latest information on qualification criteria and application processes.

Special Tax Deductions

Beyond reduced tax rates, Seychelles offers additional deductions for specific sectors and activities:

• Agriculture: Registered farms, processors, and exporters can deduct up to 5% of their taxable income or actual expenditure incurred for marketing and promotion.

This benefit requires registration with the Seychelles Agricultural Agency (SAA) and/or the Seychelles Licensing Authority (SLA).

Remember: This is not an exhaustive list, and other sectors may have access to additional deductions. Researching the relevant incentive acts (e.g., Tourism Incentive Act 2003, Agriculture Incentive Act 2005) or consulting with a professional is recommended.

Application Process

There isn't a universal application process for all tax incentives in Seychelles. The specific requirements will vary depending on the benefit you're seeking.

Here are some general steps to consider:

1. Research: Identify the incentive program that best suits your business activity and location.
2. Contact Authorities: Reach out to the relevant government agency or authority overseeing the chosen program. This could be the Seychelles Revenue Commission, the Enterprise Seychelles Agency, or a specific sectoral ministry.
3. Gather Documentation: Prepare the required documents as per the program guidelines. These may include business registration documents, financial statements, and project proposals.
4. Submit Application: Follow the application process outlined by the overseeing authority. This might involve submitting an application form electronically or in person.
5. Await Approval: The timeframe for approval can vary depending on the program and complexity of your application.