12.01.11
Posted in Business and Economy, Financial Services, Foreign investments, International relations, SIBA at 3:38 pm by Robert Klien
A Seychelles’ delegation has attended a 2-day conference. The event was held in Prague on November 10-11, 2011.
The event was organized by the SIC Corporation based in the Czech Republic with the support of the Seychelles Investment Board (SIB). The conference targeted mainly Russian investors interested in investing.
The delegation was led by Investment, Natural Resources and Industry Minister Peter Sinon. Also, there were members of the delegation from the SIB, the Central Bank of Seychelles, the Seychelles International Business Authority (SIBA), and several domestic private financial services sector companies.
This conference aimed to tell investors about various emerging opportunities and possibilities for investment in Seychelles. Also, the event was used as an occasion to formally nominate the partners of SIC Corporation as candidates for the Trade and Investment Representatives’ of Seychelles in Russia and the Commonwealth of Independent (CIS) countries.
In his opening speech, Sinon emphasized that Seychelles is a well-positioned jurisdiction and that there is an increase in trade and investment potentials between Africa and the growing emerging markets of the Far East. He stressed that the jurisdiction is a politically stable, open, welcoming, multi-cultural and idyllic destination in the middle of the Indian Ocean that is a potential powerful platform for offering financial solutions and related services.
Seychelles has maintained a good relationship with Russia and the CIS countries. Investment from this part of the world has significantly contributed to the figures for foreign direct investment (FDI) in Seychelles.
It should be noted that, in accordance with the data revealed by the UN Conference on Trade and Development (UNCTAD), the Russian Federation is the largest outward investing emerging economy surpassed only by Hong Kong. Russia stands ahead of Brazil, China and India. This is the motivation for trying to get to know specific and interested investors in what Seychelles has to offer.
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10.26.11
Posted in Business and Economy, Foreign investments at 1:36 pm by Robert Klien
The Seychelles Investment Board (SIB) aimed to stimulate economic development, to expand and escalate growth through effective investment promotion plans acknowledges that the Seychelles business environment should be further enhanced with a view to facilitate processes for businesses to go through during the business cycle.
The Board suggests that the improvement process will require dialogues and participation of both the private and public sectors. It foresees that a complete and effective transformation of the business environment will take a few months of dedicated hard work and cohesive approach. SIB is convinced that support structures should be put in place to ensure that the process not only makes it easy for the business community but will also allow government institutions to continuously monitor the business processes as well as maintain records on business development.
The above-mentioned commitment was reinforced during the Seychelles Investment forum held on July 20-21, 2011.
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10.18.11
Posted in Business and Economy, International Organisations, Seychelles government at 2:59 pm by Robert Klien
On October 17, an International Monetary Fund (IMF) team led by its head to Seychelles, Jean Le Dem, visited President James Michel to appraise him on how they find the economic reform going. Also, Vice-President Danny Faure, who is also the Minister for Finance, Central Bank Governor Pierre Laporte and principal secretary for Finance and Trade Ahmed Afif were present during the meeting.
Mr Le Dem said that the programme’s performance was good and the jurisdiction has met all the quantitative criteria as at the end of June 2011. He said that the Fund will next review the structural reform programme and see where it is necessary to accelerate the programme. Also, it will discuss Seychelles Budget 2012 including the situation with Air Seychelles.
Mr Le Dem noted: “We also discussed the inflation issue which has risen a little to 3.3% in September and the chances for price increases but also how this can be mitigated through the social welfare agency”. He stated that the reforms have stabilised the economy of the offshore jurisdiction as well as stressed that it is needed to ensure the private sector continues to grow in order to support the economy.
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09.08.11
Posted in Business and Economy, Offshore Services, Seychelles IBC, Seychelles companies, Seychelles offshore jurisdiction at 4:06 pm by Robert Klien
Offshore Incorporations Limited (OIL), a leading global company formation specialist, has announced the opening of its 1st office in Europe.
Offshore Incorporations Limited serves professional intermediaries and specializes in company formation in the Seychelles and other offshore jurisdictions. Besides company incorporation in the Seychelles, OIL provides company formation services for those who wish to set up a company Hong Kong, the Cayman Islands, the British Virgin Islands, Singapore, the Bahamas, Anguilla, Delaware, Mauritius, and Samoa.
This Asia-based company will move its office to London to further support companies based in Asia requiring international structures to facilitate strong capital flows from Asia to Europe.
OIL was established in Hong Kong in 1986.
Martin Crawford, CEO for OIL, commented: “This is the first step in expanding OIL’s presence across Europe and it is an exciting milestone for the business, having just celebrated 25 years in Asia. We wish to continue supporting our clients as they grow globally and require a wider variety of services for their offshore activities. You just need to look at the fact that over 50% of new properties in London are purchased by Asian investors to see the growth in demand.”
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08.27.11
Posted in Business and Economy, International relations at 3:28 pm by Robert Klien
Seychellois officials received training on how to manage offshore oil and gas resources as oil has been discovered in Seychelles’ waters.
The representatives of the jurisdiction learned how to manage the above-mentioned resources through a 3-day workshop. The event was run by the US Department of the Interior’s Bureau of Ocean Energy Management (BOEMRE), in collaboration with the Seychelles Petroleum Company (Sepec).
The workshop that opened on August 23 was aimed at officials involved in petroleum engineering, environment, regulatory formulation, revenue management and legal affairs. The opening of the workshop took place in the presence of the Vice-President and Minister for Finance Danny Faure and finance principal secretary Ahmed Afif.
It should be mentioned that this is the 3rd visit to Seychelles by the US Department of the Interior since 2010. It comes at a time when 2 foreign companies are active in exploring a total area of about 36,000 sq km of Seychelles’ exclusive economic zone. Both companies are committed to drill wells in 2012.
The workshop included discussions on how issues relevant to Seychelles’ oil and gas sectors are handled in the US. The issues under discussion include tendering, licencing, geologic and economic modelling, managing transactions and revenue and environmental review and compliance.
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08.19.11
Posted in Business and Economy, Seychelles legislation at 1:37 pm by Robert Klien
It has been discussed recently that Seychelles’ tax reforms will end with the Value Added Tax (VAT) due to come into effect on July 1, 2012. So, on July 1, 2012, the VAT will replace the GST (Goods and Services Tax).
GST was implemented in Seychelles in 2003 and is levied on the importation of all goods, unless exempted under the GST Regulations 2003. GST is also levied on the sales turnover of specified manufacturers of goods produced in Seychelles and on specified service providers. Initially, this tax was imposed at the point of entry and at the point of sale for professional service providers. As the years went by, only holders of the Tourism Incentive Act (TIA) certificate benefited from a GST concession on imported goods. Then, in 2010, the concession was extended to other businesses. As a fact, GST works as a turnover tax without deduction of the input tax.
VAT is a broad-based tax, levied on all imported goods at the point of entry by Customs and on domestic supplies of goods and services made by Vat registered businesses, with a few exemptions specifically designated in the Value Added Tax Act 2010.
There are certain similarities of VAT and GST. First of all, both VAT and GST are indirect taxes levied on sales, and the final consumers bear the ultimate burden of the tax. However, VAT will correct some undesirable effects of the GST, such as the cascading and distorting ones. So, VAT is to significantly improve the tax system.
When a VAT-registered taxpayers purchases goods or incurs expenses for the purpose of their businesses, they are allowed to offset the tax paid on these inputs (input tax) against the tax collected from their customers (output tax). If the difference occurs, it is remitted to the Seychelles Revenue Commission. If input tax exceeds output tax, there is a VAT credit that can be either carried forward or refunded. So, these typical VAT mechanisms prevent double taxation and cascading effects allowed by GST.
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08.10.11
Posted in Business and Economy, Seychelles government at 8:08 am by Robert Klien
The tax reforms in Seychelles will end with the VAT (Value Added Tax) due to come into effect on July 1, 2012.
Vice-President Danny Faure said that VAT is seen as a more fair way to collect tax which will apply to businesses with an annual turnover above R5 million but voluntary for those earning less.
This was said in an interview attended by principal secretary for Finance Ahmed Afif, chief executive of the Seychelles Revenue Commission (SRC) Jeniffer Morel and assistant tax commissioner Marie-France Fanchette. Also, an experienced IMF expert who will be based in Seychelles to advise on the implementation of the tax was present.
Mr Faure said: “We in government believe that the final stage of the whole reform is very important and we will need to continue as we have been doing over the last two years, communicating, talking and getting questions from citizens and the business community which will be sent to the SRC for answers”.
Businesses earning less than R5 million a year can register under the VAT system.
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08.06.11
Posted in Business and Economy, International relations, Seychelles government at 8:01 am by Robert Klien
On August 4, Maldivian President and Seychellois President discussed various issues including challenges faced by small island states such as economic development, climate change and the threats of piracy as well as maritime and fisheries cooperation.
Besides President Michel, Maldivian President Nasheed held talks with Vice-President Danny Faure and the Minister for Foreign Affairs Jean-Paul Adam.
Mr Michel welcomed Mr Nasheed saying: “We are very happy to welcome you in our islands, to develop closer relations and consider the challenges of small island states together”.
The 2 presidents witnessed the signing of a memorandum of understanding on fisheries cooperation as well as a protocol on cooperation to combat piracy and other maritime security threats in the Indian Ocean. These documents were signed by Minister Adam and his Maldivian counterpart Ahmed Naseem.
Also, to encourage trade between Seychelles and the Maldives, the presidents agreed that a shipping line between the jurisdictions is needed to be developed. By means of that, economic cooperation and exchange will be enhanced.
President Michel said: “We must do more to improve our regional trade and share our expertise, especially as we are both focused on fisheries and tourism, and in this way develop sustainable solutions to regional challenges”.
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07.22.11
Posted in Business and Economy, Double Taxation Agreements, International relations at 2:55 pm by Robert Klien
On July 21, Seychelles and Kenya initialed the signing of an avoidance of double taxation agreement (DTA). The agreement was initialed by Seychelles’ principal secretary for Finance and Trade Ahmed Afif and Kenya’s deputy director for economic affairs Martin Gumo.
When the DTA is signed, it will be easier and cheaper for the two neighbouring countries to trade.
The DTA will provide certainty with regard to taxes payable on incomes generated from investments made between the 2 jurisdictions. According to Mr Afif, “it also provides an inducement to nationals of both countries to focus their attention on increasing trade, investment and employment opportunities”.
The document is expected to be signed by the end of the year 2011.
Seychelles already has 14 such agreements in force. Also, the jurisdiction is targeting to sign 40 DTAs with different countries.
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06.20.11
Posted in Business and Economy, International Organisations at 4:33 pm by Robert Klien
The Executive Board of the International Monetary Fund (IMF) has completed the 3rd review under the 3-year Extended Arrangement, which became effective on December 23, 2009 in the amount of SDR 19.8 million.
As the review has been completed, it makes available to disburse SDR 3.52 million, which is about USD 5.6 million.
In 2010, the economy of Seychelles recovered strongly from the debt and balance of payments crisis in 2008 that was followed by global recession of 2009. Economic growth was driven by really high foreign direct investment (FDI) as well as a rebound in tourism. Inflation in the jurisdiction remained near 0. The offshore jurisdiction continued to rebuild its international reserves and reduce public debt. The economic program supported by the Extended Fund Facility (EFF) remains on track and all quantitative performance criteria at end-December 2010 were met.
In 2011, the policy mix under the program has been adjusted, which was in response to the global commodities price shock and the recent financial difficulties of Air Seychelles. The IMF expects that fiscal policy will be slightly looser to accommodate additional priority spending, while maintaining the targeted progress toward external stability and debt sustainability. The Fund stated that structural reforms are expected to concentrate on enhancing the financial sector by means of modernizing its legal and regulatory framework and restructuring and/or privatization of several state-owned financial institutions.
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