01.21.15

Seychelles provides Presumptive Tax Opt-Out Deadline

Posted in Business and Economy, Seychelles government, Seychelles offshore jurisdiction at 7:23 pm by Robert Klien

The Seychelles Revenue Commission (SRC) has provided a public ruling, effective for the 2015 tax year, to provide a deadline for businesses wanting to exercise their new right to opt out of the presumptive tax regime.

The presumptive tax regime was introduced from January 1, 2013. It aims to make it easier and less time-consuming for businesses to comply with their tax obligations. The new presumptive tax regime removes all obligations related to business tax and value-added tax (VAT).

Any business, including sole traders, partnerships, and companies, that is not voluntarily registered for VAT and has an annual turnover of less than SCR 1 million (USD 71,260) during a tax year is liable for a 1.5% presumptive tax based on that turnover.

However, a business now has the choice to opt out of the presumptive tax regime and instead be assessed under the normal business tax regime. According to the Seychelles Revenue Commission, businesses wishing to opt out should formally notify the SRC by April 30, 2015.