The
only significant tax bearing on individuals
is the social security tax; there is no income
tax as such, no capital gains, gift, property
or estate taxes. Foreign-source income is untaxed.
There are import duties on many items and a
VAT was introduced in 2003.
Seychelles Residence and Liability for Taxation
There
are no statutory residence rules as such, but
an individual is considered resident if he is
present in the Seychelles for more than 180
days in any one tax year. The distinction between
residence and non-residence is material only
in respect of Seychelles-source dividends, interest
and royalties, which mostly bear withholding
tax if paid to non-residents (some types of
royalty do not).
As
regards taxation, there is no distinction between
foreign and Seychellois individuals. There is
no individual income tax as such, but all employees
and their employers pay social security contributions,
which at least as far as the employer is concerned
amount to an income tax.
If
an individual has Seychelles-source business
income, whether from self-employment or as the
sole proprietor of a business or as a partner
in a business, then he will pay Business Tax
on the net income - see Direct
Corporate Taxation for the details. Foreign-source
income is not taxable; neither is Seychelles-source
income on which 'final' withholding tax has
been levied; again, see Direct
Corporate Taxation - Withholding Tax for
the details. Payments on which social security
charges have been levied are also exempt from
Business Tax.
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Seychelles Social Security Tax
Employers and employees make social security
contributions in the Seychelles; these also
apply to directors' fees, payments in kind and
royalties paid for services performed.
The
employee pays 2.5% of salary; the employer pays
20%.
The
employer withholds both his and the employee's
contributions and remits them monthly to the
tax authorities.
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