02.20.17

Individual Income Tax Changes delayed in Seychelles

Posted in Business and Economy, Seychelles government at 1:28 pm by Robert Klien

On February 14, in his State of the Nation Address, President Seychelles’ Danny Faure announced that the implementation of a progressive personal income tax regime will be delayed to January 1, 2018.

Under the new regime, a SCR 8,555.5 (USD 630) tax-exempt threshold will be introduced. However, it will not be available to expatriates. Income tax above that threshold will be subject to progressive rates of 15%, 20%, or 30%.

Its introduction had already been delayed to July 1, 2017, rather than January 1, 2017, in the 2017 Budget announced in December 2016. According to the President, the further 6-month delay is needed for more qualitative preparation.

Also, he disclosed that, within its continuing policy to reduce the cost of living in Seychelles, the Government of the jurisdiction will revise the list of goods which will not be subject to value-added tax (VAT). The revised list, which will include new products, will be published as from March 1, 2017.