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Income and Non-Monetary Benefits Tax

Effective 1st July 2010, Seychelles Revenue Commission introduced Income & Non-Monetary Benefits Tax Act, 2010. The Income & Non-Monetary Benefits Tax is a tax levied on employees and the employers and replaced 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.

As of 1st July (end of July salary) 2016, there has been a number of changes to the rates and calculation of income tax on emoluments. The tax payable on non-monetary benefits remains the same.

What are the current applicable Income & Non-Monetary Benefits Tax rates?

The rates of income tax payable by an employed person in respect of gross emoluments received from 1st July 2016 are as follows:
  1. For emoluments amounting up to SCR 8,555.50 - 0%
  2. For emoluments above SCR 8,555.50 up to SCR 10,065.29, the tax rate will be calculated using the following formula:

    Tax Rate = 0.15 - [8,555.50 - (Gross Emoluments × 0.85)] / (Gross Emoluments)

  3. For emoluments above SCR 10,065.29 - 15%
  4. For emoluments of Seychellois employee in the following category; the lower of the rates 1 and 2 above or the rates prescribed below:
    • Domestic worker : SCR 50.00
    • Day Care Worker : Either SCR 100.00 or 10% whichever is lower
    • A person employed by either a Farming Company or a Boat owner (as defined under the Agriculture and Fisheries Incentives Act, 2005) is SCR 100.00
    • An employed person working in Seychelles on a seaman book by virtue of an agreement between the employer and the Government of Seychelles 3%
    • An employed person working outside Seychelles, by virtue of an agreement between the employer and the Government of Seychelles 3%
    • A person employed under a specific program or an approved project through an overseas grant by an international organization - 2.5%
  5. Non-Monetary Benefits tax payable by an Employer is 20%
How is Income Tax calculated?

Add together all your cash remuneration for the month. This will include the basic pay and other taxable cash allowances etc.
  • An example for an employee earning above SCR 8,555.50 up to SCR 10,065.29 is given below:

    Monthly Basic Salary - SCR 8,700
    Allowances - SCR 800.00
    Total Emoluments – SCR 9,500
    Income Tax calculation using the formula is as follows

    Tax Rate = 0.15 - [8,555.50 - (Gross Emoluments × 0.85)] / (Gross Emoluments)

    Tax Rate = 0.15 - [8,555.50 - (9,500 × 0.85)] / 9,500 = 0.994

    Tax rate as a percentage = 0.994 x 100 = 9.94

    Tax payable = 9.94% x SR 9,500 = SCR 994.30

  • An example for an employee earning above SCR 10,065.29 is given below:

    Monthly Basic Salary - SCR 10,000
    Allowances - SCR 1,200
    Total Emoluments – SCR 11,200
    Income Tax calculation is as follows

    SCR 11,200 x 15% = SCR 1,600
Seychellois employees who pay a concessional rate of income tax (e.g. farmers, fishermen, domestic and daycare Workers) will apply the new tax rates or the existing concessional rates; whichever is lower. For example:
  • A Seychellois day-care worker earning is given below:

    Monthly Basic Salary – SCR 6,100.00
    Allowances – SCR 2000
    Total Emoluments – SCR 8,100

    The domestic worker earns less than SR8,555.50, the tax rate is 0%

  • If a domestic worker earns SR9,500, the tax calculation using the formula is SR 944.30 and the existing concessional rate is SR50.

    Tax Rate = 0.15 - [8555.50 - (9,500 × 0.85)] / 9500 = 0.994

    Tax rate as a percentage = 0.994 x 100 = 9.94%

    Tax payable = 9.94% x SR 9,500 = SCR 994.30

    In this case, the concessional rate is lower, therefore the domestic worker should pay SR50.
How is Non-Monetary Benefits Tax calculated?

Motor Vehicle - SCR 2,000 per month
Accommodation - SCR 3,000 per month
Gross Non-Monetary Benefits - SCR 5,000 per month

Non-Monetary Benefits Tax on SCR 5,000 x 20% = SCR 1,000 (payable by the employer).

For more information on Non-Monetary Benefits Tax, click here.

What will be my obligation as an employer?

The employer is required to:
  • Withhold tax at the applicable rate from the employees total emoluments
  • Pay 20% tax on the non-monetary benefits
  • Remit the tax withheld together with the non-monetary benefits tax if any
  • Submit the payroll to SRC
What will happen to the amount withheld?

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 submitted online if the employer has more than 25 employees or attached to the BAS form if the employer has less than 25 employee.

What is the due date for payment of income tax?

Income tax is due when payment of emolument is made and required to be remitted to Seychelles Revenue ommission by the 21st day after the month the withholding occurred.

What would be my obligation as an employee?

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.

Exemptions
  • Approved Government employment project or scheme
  • Emolument derived under the Privileges and Immunities Act
  • Emolument derived by a priest or other recognized religious organizations
  • Emolument derived by a person registered with National Arts Council as an entertainer
  • Reimbursement for use of motor vehicle provided a log book is maintained
  • Per diem paid at the rate not exceeding specified regulations
  • Shoes identifiable as part of a uniform or safety shoe
  • Annual bonus that meets laid down criteria (1/12 of the employees annual base salary or SR10,000 whichever is lower)
  • Compensation payment pursuant to section 62A and 47(2) (b) (i) of the Employment Act 1995
  • Service charge paid under an approved scheme
  • Retirement pension provided under Social Security Fund, Seychelles Pension Fund or other approved legislation
  • Private pension fund established and contributions made by an employer on behalf of the employed person
  • Emolument derived under a specific project whereby it is exempt under an agreement between the Government of Seychelles and another Government or International Organization
  • Emolument derived under GOP for less than 6 months under an agreement between the Government of Seychelles and the employer
  • A gratuity payment not exceeding SCR 10,000.00
  • An emolument being an overtime payment
  • An emolument being a payment in lieu of leave
Do you need more information?

If you have any doubts about Income & Non-Monetary Benefits Tax, please visit the Advisory Centre, Third Floor, Maison Collet, Palm Street or contact us on the following address:

Seychelles Revenue Commission
P.O. Box 50
Maison Collet
Victoria
Tel: 4293737
Email: commissioner@src.gov.sc


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