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Seychelles Seeks Input On Corporate Tax Regime Overhaul

Tuesday, July 16, 2019

The Government of Seychelles has launched a consultation to seek views on an overhaul to the territory's business tax regime, with a new regime proposed to be implemented from 2020.

Officials from the OECD are due to visit Seychelles from July 22-26, 2019, to support the review.

According to the Government, the review is intended to support the development of a new business tax system that is comparable to those in place in competing jurisdictions. It said the review will seek to ensure the business tax regime is simple, competitive, and aligned with international standards.

The Government will consider, among other things, whether there should be a single or several rates of corporate tax, for instance on different sectors or based on turnover; whether the Government should introduce special schemes for specific industries; appropriate investment incentives; and how to support micro businesses through the presumptive tax regime or a reform of such.

The review will look at Seychelles' international competitiveness, the Government said, looking at the effective corporate tax burden on foreign direct investment and passive income outflows.

The Government will also discuss with stakeholders interest deduction limitation rules, the rules on the carry-forward of losses, and anti-avoidance provisions.

Finally, the review will consider broader tax reform options to finance any corporate tax revenue shortfall, it said.