01.20.17

Seychelles provides Guide on Corporate Social Responsibility Tax

Posted in Business and Economy, Seychelles legislation at 10:23 am by Robert Klien

The Seychelles Revenue Commission (SRC) has issued a draft public ruling aimed at providing guidance on the definition of “turnover” for the calculation of liability to the Corporate Social Responsibility Tax (CSRT).

The 0.5% CSRT is imposed on businesses with an annual turnover equal to or exceeding the liability threshold of SCR 1 million(USD 75,100). Funds raised through the tax mostly fund community projects.

The CSRT turnover in the legislation is defined as “the gross receipts from carrying on of business.”

01.13.17

IMF says Seychelles Needs to Boost Revenue

Posted in International Organisations, International relations at 6:22 pm by Robert Klien

On January 11, the International Monetary Fund (IMF) indicated that Seychelles will need to take further measures aimed to increase tax revenue over the medium term.

With strong economic activity continuing in Seychelles, the IMF it expects the country’s primary surplus – the surplus before accounting for the cost of interest on debt – is to reach 3% of gross domestic product (GDP) in 2016, despite the expansionary impact of the fiscal initiatives announced in the State of the Nation Address in early 2016. Those measures included personal income tax (PIT) cuts and increases in pensions and the minimum wage.

The IMF confirmed that “the State of the Nation Address initiatives entailed substantial fiscal costs, around 3% of GDP on a full-year basis.” The PIT reforms were designed by the Government of Seychelles to reduce the tax burden on low-income earners and, on a phased basis, make the tax system more progressive.

The IMF noted that the proposed 2017 Budget includes some measures to moderate the impact of the initiatives, including a new property tax on foreigners’ land ownership in Seychelles, and realignments to the presumptive tax rate and to the tax rate on profits made by individual businesses. However, its opinion was that “additional and permanent measures to boost revenue and contain expenditure will be needed to ensure a steady debt reduction over the medium term.”

01.03.17

Switzerland consults on Implementation of AEOI Agreements with Seychelles

Posted in Business and Economy, International relations at 11:43 am by Robert Klien

Switzerland has launched a consultation on the introduction of the automatic exchange of information in tax matters with a series of countries including Seychelles.

The consultation will run until March 15, 2017. The Swiss Federal Department of Finance (FDF) is planning that the AEOI with a number of jurisdictions enters into force on January 1, 2018, with the first exchanges to take place in 2019.

The introduction of the AEOI with the countries confirms Switzerland’s international commitment to implement the AEOI standard. It is expected to enhance the competitiveness and credibility as well as the integrity of Switzerland’s financial center.

Besides Seychelles, the list of countries includes: Andorra, Argentina, Barbados, Bermuda, Brazil, the British Virgin Islands, the Cayman Islands, Chile, the Faroe Islands, Greenland, India, Israel, Mauritius, Mexico, Monaco, New Zealand, San Marino, the Seychelles, South Africa, Turks and Caicos, and Uruguay.