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Business Tax Concessions
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Your best source on information about concessions you may
already have is to look on your concession certificate. You
can follow the links below if you have not applied for a
certificate. This will give you guidance as to what types
of business tax concessions are available.
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Agriculture and Fisheries (Incentives) Act (AFIA)
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In accordance with Section 3 of the Agriculture and Fisheries
(Incentives) Act 2005, the following person shall be granted
incentives in accordance with the provisions of this Act.
- Farmers
- Farming entities
- Agricultural processors
- Agricultural exporters
- Fishermen
- Boat owners
- Fisheries processors
- Fisheries exporter
A relevant person shall
- be entitled to business tax concessions specified in Part 1 of Schedule 1
- pay Social Security contributions under the Social Security Act in accordance with part 2 of Schedule 1
Schedule 1 - Incentives for Agriculture
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Relevant Person
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Business Tax Rate
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Farmer
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0%
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Farming Entity
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Agricultural Processor
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Agricultural Exporter Group A
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 10% flat
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Agricultural Exporter Group B
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Schedule 2 - Incentives for Fisheries
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Relevant Person
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Business Tax Rate
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Fisherman
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0%
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Boat Owner
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Fisheries Processor
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Fisheries Exporter Group A
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 10% flat
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Fisheries Exporter Group B
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SR 0 to SR 240, 000 - 0%
Above SR 240, 000 - 15% flat
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Special Deduction on taxable income
Marketing and Promotion
The allowable deduction from taxable income shall be 200% of actual or qualifying
expenditure. The amount qualifying for the deduction shall be 5% of turnover
or the actual expenditure incurred in respect of marketing and promotion
expenses whichever is lower.
Accelerated Depreciation
Rates of depreciation allowable on capital investments other than land and
building will be at the following rates:
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Year
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Percentage (%)
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1
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45 |
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2
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40 |
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3
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20
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4
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15
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5
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5
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Tourism Incentive Act (TIA)
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Schedule 5
Main Contractors and Subcontractors during Construction Phase,
Major Renovation/Extension on any approved Tourism, Hotel
project of SR 25 million or greater.
PART 1: Main Contractors
(ii) Royalties: Royalties paid to a non-resident shall be
exempt from withholding tax
PART 2: Subcontractors
Concessions to be granted only for the following activities:
- Electrical
- Plumbing
- Pest Control
- Air Conditioning and Refrigeration
- Blasters
Schedule 12
Business Tax
Licensed Accommodation, Island Resort Hotel Operator, Restaurant, Casino
Operator, Tour Operator, Tour Guide, Water Sport Operator (Motorized and
Non-Motorized), Operator of Tourism Leisure Related Activities, Helicopter
Services Operator, Equestrian Tourism Operator and Car Hire Operator.
- SR 250,000 - Nil
- Excess over SR 250,000 - 15%
Schedule 16
Marketing and Promotion
The allowable deduction from taxable income of a business shall be 200% of
actual or qualifying expenditure in respect of marketing and promotion for
all of the sectors. The amount qualifying for the deduction shall be 5% of
the turnover of the business or the actual expenditure incurred in respect
of marketing and promotion expenses whichever is lower.
Schedule 17
Special Deduction in respect of training expenses
Expenditure of a business for the purpose of training, certified as such by the
Seychelles Tourism Board, shall be an allowable deduction from the taxable
income of a business to the extent of 150%of approved expenditure incurred.
Business Tax Deduction
200% Business Tax deduction on salaries paid by an employer to a qualified
graduate of Seychelles Institute of Technology, Farmer’s Training Centre,
Maritime Training Centre or Seychelles Tourism Academy in respect of their 12
months of full-time employment, subject to social security being paid.
150% Business Tax deduction on salaries paid by an employer to a qualifying
part–time student of Seychelles Institute of Technology, Farmer’s Training
Centre, Maritime Training Centre or Seychelles Tourism Academy in respect of
his/her work attachment, subject to social security being paid.
Schedule 19
Part 1
Accelerated Depreciation for Accommodation Providers (allowable on capital
investments other than land and building).
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Year
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Percentage (%)
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1
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45 |
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2
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40 |
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3
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30 |
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4
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25 |
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5
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10 |
Part 2
Accelerated Depreciation for activities other than Accommodation Providers
(allowable on capital investments other than land and building).
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Year
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Percentage (%)
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1
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45 |
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2
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40 |
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3
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25 |
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4
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10 |
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5
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5 |
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