The Seychelles will finish considerable reforms on the main taxes in 2017.
Since July 1, 2017 the new assessed tax on the land property in the Seychelles will be imposed, it will be levied only for foreigners, and purchases of the private land by foreigners will also attract the high state fee.
Also, the government suggests to change the law on taxes for entrepreneurs. The limit taxable for the separate entities, such as individual dealers or partners, will remain in SCR150,000. Besides, the government offers that the expected rate of a tax was changed further. The rate of a tax on the entities with turnover to SCR0.5m shall remain at the level of 1,5 percent, but the tax on three percent will be imposed on the entities with turnover from SCR0.5m. Professional taxpayers, such as accountants and engineers, will pay a rate of five percent.
The government will exempt the entities with an annual gross income to SCR1m from the tax discharge in the first year of operation to help small and medium scale enterprises. Larose told that at the moment the purpose is "to turn Seychelles into the capital of small and medium business of the Indian Ocean".
Larose also announced an...
Within the Global forum FATF and OECD on transparency and exchange of information in the tax sphere, on July 26, 2016 in Seychelles the new law about International business companies was adopted (further in the text – "The new law"). The new law offers tough, but at the same time the attractive regulatory base promoting development of competitiveness and continuation of a strong growth of popularity of the Seychelles as the international center of financial services. Fixing of regulatory aspects of the law, for the purpose of compliance to international standards, reflects interest and observance of Seychelles Republic advanced international experience, in particular, concerning an international initiative on improvement of information openness that will affect reputation of the Seychelles in the opinion of the international community positively. From the moment of adoption of law about International Business Companies, 1994 (further – "The law of 1994"), international business companies have become very successful in the Seychelles in the sector of non-bank financial services.
Despite success of the 1994 Law the Republic of Seychelles has noted the need to improve the...
The Seychelles Revenue Commission (SRC) has published the second and final Public Ruling of 2016, for provision of clarity concerning methodology, used the additional emergency tax deduction permitted for marketing and promotion of expenses for calculation.
SRC confirmed that some entities in the Seychelles are resolved, in addition to their normal deduction on the business tax (i.e. their actual marketing and the helping expenses), special subtraction equals to five percent of their leviable tax from the business income or from their actual expenses during the marketing and promotion, depending on what income is smaller.
The special deduction is allowed for farms; agricultural enterprises and exporters; boat owners; fishery entities; hotels, guest houses and organizations with own kitchen; cafe and restaurants; internal suppliers of air transport services; internal suppliers of ferry transportations; boats or charter companies of the yacht; companies of a car hire; divings and operators of water sports; travel agents, tour guides and/or guides; and gambling/casino operators.
Author: Olena Kutova
senior lawyer of the Finance Business Service company
The International Monetary Fund (IMF) concluded that the Seychelles will require additional measures to achieve its goal of debt reduction.
The Government has committed itself to the IMF, which will reduce the ratio of the Seychelles debt to gross domestic product (GDP) to below 50 percent by 2020.
According to the IMF, it is necessary that the proceeds of the Seychelles did not exceed the costs by at least three to four per cent, excluding the cost of interest payments on its debt.
Employees Fund said that "thanks to the tourists, economic growth in 2016 is projected to reach about 4.5 per cent. With the economy works well, a primary budget surplus is expected to amount to three percent of GDP this year."
The surplus will be achieved despite the impact of various tax initiatives announced in the State in February 2016, "including the personal income tax (PIT) rate and an increase in pensions and the minimum wage.
While the IMF noted that "the growth forecast for 2017 remains positive, agreed with the authorities on the need to make more progress in reducing poverty and ensuring that the benefits of economic growth is shared by all," he stressed that such a policy should "to be...
UK - The Corporation Tax main rate for 1 April 2016 is set at 20%. This rate will fall to 19% for the year beginning 1 April 2017, and to 18% for the year beginning 1 April 2020.Hong Kong - Profits tax levied at rate of 16,5% for companies carrying on business in Hong Kong (and 15% for unincorporated businesses) on relevant income earned in or derived from Hong Kong.Ireland - Standard corporation tax rate on trading income is 12,5% and 25% on non-trading income.Cyprus - Corporate tax rate is 12,5%. Certain types of income subject to Special Contribution for Defense at rates of 17%(dividends), 30%(interest) and 3%(rents).Latvia – Rate is 15%.Belize - All non-CARICOM residents, who have any taxable receipts originating from Belize, or in respect of any service provided in Belize, are required to pay business taxes as follows: Dividends - 15%, Insurance Premiums - 25%, Interest on Loans - 15%, Management fees - 25%, Rental of plant and equipment - 25%, Technical Services - 25%.British Virgin Islands - No income tax.United Arab Emirates - Income tax decrees currently enforced on oil and gas companies and branches of foreign banks. Oil and gas companies subject to...