02.26.14

Seychelles and Guernsey sign DTA

Posted in Double Taxation Agreements, International relations, Seychelles offshore jurisdiction at 9:03 am by Robert Klien

A double taxation agreement (DTA) was signed between Seychelles and Guernsey on January 27, 2014. The document between the territories was signed in London by the High Commissioner for the Seychelles, Marie-Pierre Lloyd, and Guernsey’s Minister for Treasury and Resources, Gavin St Pier.

According to the Government of the Seychelles, the DTA would encourage nationals of both jurisdictions to increase bilateral trade and investment as well as provide for certainty with regards to taxes payable on income generated from investments made between Seychelles and Guernsey.

The double taxation agreement sets out permanent establishment rules that apply to income tax in Guernsey, and business tax, income and non-monetary benefits tax, and petroleum income tax in the Seychelles. Also, this document provides for a zero withholding tax rate for dividends and interest, and for a maximum five percent withholding tax to be imposed on royalties.

The DTA enables the tax authorities of both jurisdictions to exchange taxpayer information, even if a tax authority does not require the information itself, and even if the information is held by a bank or other financial institution.

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