08.05.10
Seychelles Government to continue tax reform
According to the International Monetary Fund (IMF), Seychelles is meeting the performance criteria under its Extended Funds Facility, namely in the launch of tax reforms.
A comprehensive tax reform was launched by the Seychelles government with the budget 2010. The first stage of it was the introduction of a revised Business Tax Act from January 1, 2010. Business tax reform widened the tax base and provided for gradual reduction in tax rates.
The second stage has been the introduction of a withholding-based personal income tax on wages from July 1, 2010. Seychelles government is planning to broaden the application of personal income tax to other sources of domestic-sourced income, as the new system becomes established. From January 1, 2011, Personal Income Tax rates will be set at 15% for all categories of workers.
The last stage will be the introduction of a value-added tax (VAT) from January 1, 2012, which will take the place of multiple-rate goods and services tax (GST).
Along with these reforms, revenue administration will be also modernized. By the time of the tax reform, the Seychelles government’s policy will not provide new tax incentives and exemptions.