Accounting and tax
- If properly structured, a Seychelles nonresident company’s offshore profits are legally tax exempt;
- A resident company is taxed at corporate income 25% on revenue generated in Seychelles. However, there are no capital gain tax, interest, dividends, no gift, inheritance, property or estate taxes. Business establishments in Seychelles can benefit from the double tax treaties;
- For businesses, there is no tax on capital gains or interest, dividends and other payments sourced from abroad;
- Withholding tax is levied as follows:
- 15% on non-resident dividends;
- 15% on non-resident interest;
- 15% on non-resident royalties;
- 33% on payments of interests by a financial institution at maturity of a bearer security.
- An IBC company is completely tax free for a period of twenty years from the Seychelles business setup date, provided the company do not enter into business with local residents. However, the company is allowed to conduct business with other IBCs. IBCs cannot benefit from the double tax treaties;
- An IBC cannot take advantage of Seychelles double taxation agreements. On the other hand, investors pursuing a CSL company can benefit from Seychelles double taxation treaties with several countries, including China, Indonesia, Malaysia and Thailand;
- Clients should note, the beneficial owners of the CSL are identified to the Seychelles International Business Authority during the application process. There is also a register of shareholders and directors to be kept with the company’s agent in Seychelles;
- A Special License Company (CSL) is a domestic company with a special license, authorised to carry out specific business as per the laws. The corporate income tax of is 1.5% on its worldwide profits. CSLs can benefit from the double tax treaties;
- Seychelles signed 21 DTA worldwide, minimizing withholding tax on funds transfers between countries;
- There is no personal income tax in Seychelles. Employment income earned by individuals is not subject to income tax. There are no individual or corporate capital gains, net worth or inheritance taxes;
- In Accordance with the Seychelles Business Tax Act 2007, each Seychelles IBC must provide signed Annual Declaration disclosing the location of the company accounts and other financial records of the company. There is no requirement to file annual accounts;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
- According to the Companies Act, a company must have at least one director and one shareholder of any nationality for starting a business in Seychelles;
- The Memorandum of Association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholder and director details iv) share capital v) profit distribution method;
- Seychelles company formation are dispensed from lodging annual return or tax return;
- A private company is required to maintain both a local registered address and a local resident company secretary for Seychelles company formation;
- Each time a change occurs in the particulars of the company or to its officers, the change must be lodged with the companies registry;
- Company information such as capital structure and shareholder and director details are not publicly available. This means more privacy for shareholders;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants’ fee to project manage company deregistration is US$1,450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.
Recruitment in Seychelles
Recruitment of foreign labour requires the employer to justify the hiring of foreign worker in place of a Seychelles national. The foreign employee is expected to have professional and educational qualifications relevant to the position.
Licensing in Seychelles
- When pursuing Seychelles company formation, a general license is required;
- Any financial business registered in Seychelles requires a financial license and payment of an annual fee to the Government.