06.28.12

IMF asserts that Seychelles’ inflation will drop

Posted in Business and Economy, International Organisations at 3:48 pm by Robert Klien

It has been noted by the International Monetary Fund (IMF) that recent economic forecasts on Seychelles have been correct. The Fund expects inflation in Seychelles to drop later in 2012.

From June 20 to 27, 2012, Seychelles was visited by the IMF’s team. This delegation’s leader visited Jean Le Dem to refer to the predictions when giving a press conference with Finance, Trade and Investment Minister Pierre Laporte and Central Bank of Seychelles governor Caroline Abel at the Ephelia Resort.

At the event held on June 26, he said: “Recent economic data are broadly in line with projections, with GDP (gross domestic product) expected to grow by about 3% in 2012”. According to him, “Strong growth in tourist arrivals from new markets has more than compensated for the drop-off in visitors from traditional markets in Europe, where economic activity has been weak”. However, it was noted that year-on-year inflation has risen to 8.7%. It is expected to decelerate in the 2nd half of 2012 in the wake of the current tightening of monetary policy. “The present fiscal policy stance continues to be appropriately geared toward maintaining macro-economic stability and reducing public debt,” he said.

06.14.12

Seychelles-South Africa DTA Protocol comes into effect

Posted in Double Taxation Agreements, International relations at 3:50 pm by Robert Klien

It has been announced that the protocol to the existing double taxation agreement (DTA) between the Seychelles and South Africa has been ratified and went into effect on May 15, 2012.

This protocol was signed on April 4, 2011 to update the double taxation agreement. It reflects the introduction of the South African dividends tax, which has replaced the secondary tax on companies from April 1, 2012, and is being levied at a rate of 15% on shareholders.

However, for residents of the Seychelles receiving dividends from South African companies that rate will be 5% of the gross amount of the dividends if the beneficial owner is a Seychelles company which holds at least 10% of the capital of the company paying the dividends; or 10% of the gross amount of the dividends in all other cases.

Also, the protocol incorporates the internationally-agreed standard for the exchange of information for tax purposes into the existing DTA.