Seychelles

Seychelles applies a progressive personal income tax system (PAYE). For Seychellois citizens: 0% on monthly income up to SCR 8,555.50; 15% from SCR 8,555.51 to SCR 10,000; 20% from SCR 10,000.01 to SCR 83,333; 30% above SCR 83,333. For non-citizen employees: 15% on the first SCR 10,000; 20% from SCR 10,000.01 to SCR 83,333; 30% above SCR 83,333. Non-monetary benefits tax of 15% is payable by the employer. Tax returns are due by March 31 annually.

The standard VAT rate in Seychelles is 15%, applied to all taxable supplies of goods and services. Exports are zero-rated (0%). Exempt supplies include pharmaceutical products, infant formula, basic necessities (rice, lentils, etc.), education, health services, financial services, sale/purchase of real estate, and residential rental income. VAT registration is mandatory for businesses with annual turnover exceeding SCR 2 million.

Since January 2022, the standard business tax rates in Seychelles are 15% on the first SCR 1 million of taxable income and 25% on income exceeding SCR 1 million. For telecom, banking, insurance, and alcohol & tobacco manufacturing sectors, the rates remain at 25% on the first SCR 1 million and 33% above. Foreign companies are taxed at the same rates as domestic ones. A company outside a multinational group is not taxed in Seychelles on income from activities, goods or rights outside Seychelles. A member of a multinational group is taxed on profits from activities outside Seychelles unless they are earned through a permanent establishment abroad. Companies with sufficient economic substance may receive exemptions on foreign-sourced passive income, except for IP rights income (unless from patents linked to R&D conducted in Seychelles). Small businesses (non-VAT registered, under SCR 1M turnover) may opt for a 1.5% presumptive tax on turnover.

Capital gains are not subject to tax in Seychelles.

Foreigners who own residential immovable property are liable to an annual immovable property tax at the rate of 0.50% of the market value of such property. Residents buying immovable property pay stamp duty at the rate of 5% of the transaction amount, while special rules apply for non-residents. Stamp duty may also be payable on certain other transactions.