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Income and Non-Monetary Benefits Tax
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Effective 1st July 2010, Seychelles Revenue Commission has introduced
Income & Non-Monetary Benefits Tax Act, 2010.
The Income & Non-Monetary Benefits Tax is a tax levied on employees and the employers
and will replace the previous social security contribution.
The Income Tax (emoluments, e.g salary, allowances) is payable by employees, whereas the
Non-Monetary Benefits Tax (e.g. motor vehicle, accommodation) is payable by the employers.
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What are the applicable Income & Non-Monetary Benefits Tax rates?
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The rates of income tax payable by an employee in respect of emoluments
received from 1st July 2010 are as follows:
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Income Tax (Seychellois employees) 15%
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Income Tax (Non-Seychellois employees) 15% (effective 1st January 2011)
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Non-Monetary Benefits tax payable by an Employer is 20%
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Domestic worker : SR 50.00
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Day Care Worker : Either SR 100.00 or 10% whichever is lower
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A person employed by either a Farming Company or the Boat owner (as defined under the Agriculture
and Fisheries Incentives Act, 2005) is SR 100.00
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How is Income Tax calculated?
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Add together all your cash remuneration for the month. This will include the basic
pay, allowances, overtime, payment in lieu of leave, etc.
An example for a Seychellois employee is given below:
Monthly Basic Salary - SR 4,000.00
Allowances - SR 1,200.00
Total Emoluments – SR 5,200.00
Income Tax : SR 5,200.00 x 15% = SR 780
Effective as of the 1st January 2011, the Income Tax on the Total Emoluments for a
non-Seychellois employee is 15%.
An example for a non-Seychellois employee is given below:
Monthly Basic Salary – SR 5,000.00
Allowances – SR 5,000.00
Total Emoluments – SR 10,000.00
The Total Emoluments of SR 10,000.00 should be grossed up by 5.88% - 10,000 + 5.88% = SR 10,588
Note that grossing up of the employees emolument should happen only for persons in employment
as at 1st January 2011 and it is a once only requirement.
Income Tax : SR 10,588.00 x 15% = SR 1588.00 (payable by the employer on behalf of the employee)
Note: The net take home pay of a non-Seychellois employee should not be greater or
less than what he/she was taking home when the Income Tax was 10%.
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How is Non-Monetary Benefits Tax calculated?
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Motor Vehicle - SR. 2,000
Accommodation - SR 3,000
Gross Non-Monetary Benefits - SR 5,000
Non-Monetary Benefits Tax on SR 5,000 x 20% = SR 1,000 (payable by the employer).
For more information on Non-Monetary Benefits Tax, click here.
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What will be my obligation as an employer?
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The employer is required to:
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Withhold tax at the applicable rate from the employees total emoluments
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Pay 20% tax on the non-monetary benefits
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Remit the tax withheld together with the non-monetary benefits tax, if any
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What will happen to the amount withheld?
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Income tax withheld on the emoluments of employees is required to be remitted
to Seychelles Revenue Commission on a monthly basis using the Business Activity
Statement (BAS form).
Other than the compulsory employer’s details, the employer is required to show total employees
as featured on the payroll, total emoluments paid and tax payable thereon. A copy of the employer’s
payroll must be attached to the BAS form.
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What is the due date for payment of income tax?
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Income tax is due when payment of emolument is made and required to be remitted
to Seychelles Revenue Commission by the 21st day after the month the
withholding occurred.
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What would be my obligation as an employee?
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Employees will be able to check their pay slips to see that the tax
has been deducted and they can always contact the Seychelles Revenue
Commission to ensure that the tax withheld has been remitted to the
commission on their behalf.
Should the information provided by the employee differ to amount received from the
employer, the employee would be asked to complete a declaration statement and any
discrepancy observed will be followed up with the employer.
A copy of the employer’s payroll must be attached to the BAS form.
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Exemptions
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Approved Government employment project or scheme
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Emolument derived under the Privileges and Immunities Act
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Emolument derived by a priest or other recognized religious organizations
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Emolument derived by a person registered with National Arts Council as a musician
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Reimbursement for use of motor vehicle provided a log book is maintained
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Per diem paid at the rate not exceeding specified regulations
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Shoes identifiable as part of a uniform or safety shoe
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Annual bonus that meets laid down criteria (1/12 of the employees annual base salary or SR10,000
whichever is lower)
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Compensation payment pursuant to section 62A of the Employment Act 1995
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Service charge paid under an approved scheme
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Retirement pension provided under Social Security Fund, Seychelles Pension Fund or other approved
legislation
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Do you need more information?
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If you have any doubts about Income & Non-Monetary Benefits Tax, please visit the Advisory
Centre, Room 2 (Ground Floor), Ocean Gate House, Victoria or contact us on the following address:
Seychelles Revenue Commission
P.O. Box 50
Orion Mall
Victoria
Tel: 293737
Email: commissioner@src.gov.sc
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