08.22.15

Seychelles signs TIEA with India

Posted in Bilateral Treaties, Business and Economy, International relations at 12:59 pm by Robert Klien

According to an announcement issued by the Indian Government’s information bureau, the Cabinet has approved the signing of a tax information exchange agreement (TIEA) between Seychelles and India.

The statement was made on August 20, 2015 to explain that the agreement will encourage the flow of information with respect to taxes in order to help curb tax avoidance and evasion.

The agreement will enable the Competent Authorities of both jurisdictions to provide assistance through exchange of information relevant to the administration and enforcement of the domestic laws of two countries concerning taxes covered by this TIEA. Information received under the tax information exchange agreement is to be treated as confidential and may be disclosed only to persons or authorities concerned with assessment, collection, enforcement, prosecution, or determination of appeals, in relation to taxes covered under the agreement. Information may be disclosed to any other person or entity or authority or jurisdiction with the prior written consent of the country sending the information.

Also, the document provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on procedures under the agreement.

The TIEA will enter into force on the date of notification of completion of procedures required by the respective laws of the two countries.

India has signed similar bilateral agreements for Exchange of Tax Information with Argentina, Bahamas, Bahrain, Belize, Bermuda, BVI, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Liechtenstein, Macao, Monaco and San Marino.

08.04.15

Seychelles FATCA Reporting Portal Launched

Posted in Business and Economy, Seychelles infrastructure at 1:07 pm by Robert Klien

The Seychelles Revenue Commission (SRC) has announced that the system enabling financial institutions to report information about their American clients under the United States Foreign Account Tax Compliance Act (FATCA) was launched on July 31, 2015. However, it is not yet possible for FIS s to upload the necessary data.

In an earlier circular dated April 2015, the SRC informed FIs that they will be required to transmit financial account information to the US Internal Revenue Service by September 30, 2015. Therefore, affected financial institutions were to report financial account information by no later than June 30, 2015, in the form of a data file compiled in accordance with FATCA XML v1.1 schema.

To address situations where foreign law would prevent an FFI from complying with the terms of an FFI agreement, the US Treasury Department has developed 3 model intergovernmental agreements (IGAs). The Seychelles has signed a Model 1 IGA, under which FIs report tax information about US account holders directly to the local revenue authority, then the information will in turn relay to the IRS.