Seychelles DTA Agreement News Update
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Double Tax Avoidance Treaties
The Seychelles have ratified several double tax avoidance treaties it signed in the past. Seychelles had 3 treaties already in use, namely the Indonesia – Seychelles, South Africa – Seychelles and China – Seychelles treaty. One more has come into effect as from the 1 st of January 2005 and 4 others are likely to come into effect soon.
A Seychelles Special License Company (CSL) is a domestic company with a special license, authorised to carry out specific business as per the laws and pays tax at a flat rate of 1.5% on its worldwide profits. Such a company can use the treaties signed by the country to reduce and avoid double taxation, subject to the agreements signed by both countries. The annual license fees payable to the authorities amounts to USD 1200. The rough estimate to setup a Seychelles CSL is between USD 6000 to USD 8000 for the first year.
Who is it for?
- Trading Entities
- Tax planning vehicle for people investing into China, South Africa, Indonesia and Oman.
- Low tax rate of 1.5% on worldwide profits
- Minimise tax by using the double tax avoidance treaties
- Normally uses International Accounting Standards but the authorities are flexible with other systems such as GAP
- Confidential vehicle
Double Taxation Avoidance Treaties Summary Table
Req* - Request
- Dividends, interests and royalties derived from Seychelles by offshore entities are tax exempt. No capital gains.
- Double taxation is eliminated by the credit method, i.e the taxpayer's country of residence will grant a credit for taxes paid in the source country.
- When a resident of Seychelles is recipient of dividends from a company which is resident of the treaty country, the recipient is entitled to a tax credit which shall take into account the tax paid in the treaty country by the company paying the dividend in respect of the profits out of which the dividend is paid.
Negotiations in Progress
- Czech Republic
Agreement to Negotiate
- Ivory Coast
Procedure to incorporate
Contact Dharmesh Naik by email email@example.com
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