An expert guide to new legislation in Seychelles

Banking & Finance
| The European | 5th August 2019
Save

In accordance with global trends in financial services, the Seychelles undertook a review of all relevant preferential tax regimes, and as such, amendments were made to certain legislations. The International Business Companies Act has been amended to allow international business companies (IBCs) to conduct commercial business in Seychelles. This is in line with the amendments made in the Business Tax Act to move Seychelles tax system to a territorial system. The tax exemption clause under the IBC Act has been removed. Only IBCs deriving “assessable income” in Seychelles will be required to submit annual returns and audited accounts. Conversely IBCs conducting all business outside of Seychelles are tax-exempt. Legislation was also enacted to ensure no public access to the filed Register of Directors.

Similarly, in light with concurrent amendments in the Business Tax Act to move Seychelles tax system to a territorial system, the Companies (Special Licenses CSL) Act has been amended to remove the 1.5% business tax concession and withholding tax exemptions.

The Insurance Act has been amended to remove tax exemption provision applicable to non-domestic insurers. Non-domestic insurers licensed on or before 16 October 2017 may still be able to enjoy these tax concessions and exemptions until the 30 June 2021.

The licensable export services activities under the International Trade Zone Act have been amended to remove the activities falling within the scope of OECD measures on base erosion and profit shifting (BEPS). Under the revised export services regime, the holder of an Export Services License will not be allowed to provide any services other than repair and reconditioning of goods, warehousing and rental of storage space or logistic services.

The Securities Act and The Mutual Fund and Hedge Fund Act have been amended to require licensees to meet the minimum substance requirements in order to benefit from the concessionary tax rate afforded under these legislations. The regulations provide that the substantial activity requirements shall be met if the licensee (including fund administrator) undertakes its core income generating activities in Seychelles by employing, a reasonably adequate number of suitably qualified persons to carry out the core activities. The licensees are also expected to incur an adequate amount of operating expenditures for such activities.

The aforementioned amendments contribute to more security and stability of conducting operations especially existing government controls and regulations and still provide a suitable environment for a suitable international company environment structure. As the amount of international companies already present will testify, Seychelles has a special appeal, and offers fabulous opportunities and benefits for those ready to launch.

All About Offshore Limited

At All About Offshore Limited (AABOL) we are ready to help you navigate this legislative framework and get the most out of opportunities in Seychelles. Based in Seychelles, we are a group of qualified professionals with a range of cross-sector experience including, financial planning, business management and the legal professions. As licensed corporate service providers, we provide an efficient, accurate and competitive offshore company formation service. We are proud to have won a number of awards for our outstanding services to clients. We offer a comprehensive range of incorporation and nominee services for Seychelles and other jurisdictions and have a team of multi-lingual client relationship managers who take pride in providing a premium service. At AABOL we also offer shelf companies and a comprehensive range of post-incorporation services as well as assistance with accounting, audit and offshore banking.

Further information

www.aabol.sc

For more finance news, follow The European.

Sign Up

For the latest news

Read On The Go

Subscribe

Get the digital edition of the Award Winning The European

subscribe for free

Download the App free today

Follow your favourite business magazine while on the go. Available on

Hard Copy

Magazine

Get your favourite magazine delivered directly to your door

£49.95 4 issues

Other Banking & Finance Articles You May Like

Website Design Canterbury

Magazine

Hard Copy

GET YOUR FAVOURITE MAGAZINE DELIVERED DIRECTLY TO YOUR DOOR



Annual Magazine Subscription (4 Issues)
Shipping Options



Subscribe

Read On The Go

GET THE DIGITAL EDITION OF THE AWARD WINNING THE EUROPEAN