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Seychelles: Domestic Corporate Taxation

Calculation of Taxable Base

Allowable expenditure is that incurred 'in the course of carrying on business activities', excluding capital, private and domestic expenses. A normal range of expenses are deductible. The following list gives some of the main additional deductions that are permitted:

  • Pension scheme contributions;
  • Professional fees incurred in preparation of the tax return;
  • Net salaries and wages, owners and partners are not permitted a deduction of their salaries;
  • Royalties and other payments made to non-residents from which withholding tax has been deducted (see below);
  • Previous years' losses, which can be carried forward only for five years; losses cannot be carried back; capital losses are not deductible;
  • Non-capital expenditure on repairs to premises, plant and machinery;
  • Losses incurred in property dealing;
  • Specific bad debt write-offs; provisions for this or other purposes are not deductible;
  • Office buildings are depreciated at a rate of 50% for the first year and 25% for the second and third years; hotels are depreciated at a rate of 20% for the first year and 10% for the following eight years; other buildings are depreciated at a straight-line rate of 4%; other assets are depreciated at conventional straight-line rates;
  • Interest on borrowings made for the purpose of producing assessable income; the rate of interest chargeable is limited by reference to Central Bank rates.



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