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Withholding Tax

What is withholding tax?

The Business Tax Act 2009 applies taxation on non residents earning certain types of income in the Seychelles. This tax applies to interest, dividends, royalties, technical service fees, natural resource amount or insurance premium paid by a resident of the Seychelles to a non resident. The method used to collect such taxation is known as withholding tax and involves the payer withholding tax from the gross payments made to the payee. The payer then remits this the amount withheld in their monthly Business Activity Statement (BAS).

Withholding tax may also apply to certain interest payments made to residents by residents.


Who pays withholding tax?

Withholding tax is applicable to certain categories of income defined under Division II section 62 to 66 of Business Tax Act 2009 such as:
  • a dividend that is paid by any person to a non-resident under section 66(1)
  • a royalty that is paid by any person to a non-resident under section 66(1)
  • natural resource amount that is paid by any person to a non-resident under section 66(1)
  • insurance premium that is paid by any person to a non-resident under section 66(1)
  • technical service fee that is paid by any person to a non-resident under section 66(1)
  • remuneration paid to a non-resident entertainer or sport person in respect of performance or sporting event in Seychelles under section 66 (2) a
  • gross receipts from a performance or sporting event in Seychelles by a theatrical, musical or other group of non-resident entertainer or sport person under section 66(2) b.
  • interest that is paid by a person being a non-financial institution to a person not being a financial institution under section 63 as amended in SI 6 of 2010
  • interest payment on current account under section 63 as amended in SI 6 of 2010
  • interest payment on fixed deposit account under section 63 as amended in SI 6 of 2010
  • interest payment on call deposit under section 63 as amended in SI 6 of 2010
  • interest payment on bearer bonds under section 63 as amended in SI 6 of 2010
  • a person making payment to a specified business under section 64

When is it payable?

Withholding tax is due and payable to the Revenue Commission within 21days after the end of the month in which the person was required to withhold the tax. As withholding tax is a final tax, income that is subject to withholding tax is not liable to business tax.


Rates of withholding tax

The rates that apply to the above payments are listed in the first schedule of the Business Tax Act.


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