06.09.06
Taxation of Seychelles CSL company
Schedule 2 of the Act provides tax rates for Seychelles CSL Company.
The rate of the tax payable by a company in respect of its taxable income is 1.5%.
The rates of withholding tax are the following:
- dividend paid to a resident – nil;
- dividend paid to a non-resident – nil;
- interest paid to a resident – nil;
- interest paid to a non-resident – nil;
- royalty paid to a non-resident for the right to use a copyright, patent, trademark, design, model, plan – nil;
- royalty paid to a non-resident for supply of scientific, technical, industrial or commercial knowledge, services, information – nil;
- royalty paid to a non-resident for the right to use a secret formula, process ot know-how whether technical, managerial or otherwise, other intellectual property or right – nil;
- royalty paid to a non-resident for the right to use an industrial, commercial or scientific equipment – nil.
So, under the Business Tax Act, the CSL is liable to Seychelles corporation tax at the rate of 1.5% on its income. No withholding tax must be paid on dividends, interest or royalties. This is different from the common approach of taxing only Seychelles-sourced income.