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The Self-Assessment System – Assessing your own tax liabilities

The Seychelles Tax System has since 1 January 2010 moved to Self-Assessment for the business tax return. This means that at the end of each business year, all businesses should complete a Self-Assessed Business Tax Return which was introduced in line with the Business Tax Act 2009 (Section 58). The Self-Assessment system gives taxpayers greater equity and fairness, increased certainty and simplicity. It places greater responsibility on the taxpayer to assess their tax debt or refund. It is therefore very important that all businesses are well acquainted with the system.

What is a Self Assessment Tax Return?
A self Assessment Tax return is a business tax return which allows all taxpayers to make their own assessment of their business and report their taxable income for the relevant tax period covered by the business, with permitted deductions and exemptions and calculations for their tax liability payable or net loss for the year.

How does the assessment system works?
Under the self-assessment system, the claims a taxpayer makes in their tax return are accepted by the Seychelles Revenue Commission (SRC), usually without adjustment, and an assessment notice is issued. It is important to note however that even though SRC may initially accept the tax return, the return may still be subject to further review.

To ensure the integrity of the tax system, the law provides SRC with a period where it may review a return (and make sure all income has been included) and may increase or decrease the amount of tax payable. SRC may amend an assessment up to two years (or four years for taxpayers with more complex tax affairs) after tax became due and payable under the assessment. Where anti-avoidance provisions apply, the period is four years. Where the avoidance is due to fraud or evasion, there is no time limit on amending the assessment.

What will happen if you lodge an incorrect tax return?
The Seychelles Revenue Commission (SRC) treats taxpayers as being honest in their tax dealings and acknowledges that mistakes can occur.

SRC has the responsibility of verifying all information given through a tax return, to check its accuracy. Therefore, if the audit program detects any undeclared assessable income or incorrectly claimed tax deductions by taxpayers, SRC may issue an amended assessment disallowing deductions or tax offsets on tax returns. The taxpayer is obliged to repay any tax owed, together with interest and/or penalties as prescribed by law.

What are your responsibilities as Taxpayers?
When you lodge your tax return, SRC believes that you have completed your tax return in good faith and so taking responsibility for the claim you have made. If you become aware of some incorrect information on your tax return, you must contact SRC as soon as possible to correct the error.

You should also note that even if someone else – including a registered tax agent – prepares your tax return, you as the taxpayer, are still legally responsible for the accuracy of the information you have provided the SRC with.

For more information
You can contact Seychelles Revenue Commission on 4293737 or email us at advisory.center@src.gov.sc.
The Value Added Tax Act, 2010 is available here.


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