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Income and Non-Monetary Benefits Tax

Effective 27th December 2017, Seychelles Revenue Commission introduced Income & Non-Monetary Benefits Tax (Amendment) Act, 2017. The Income & Non-Monetary Benefits Tax is a tax levied on employees and the employers and replaced the previous Income & Non- Monetary Benefits Tax Act 2010.

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 June (end of June salary) 2018, 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 taxable emoluments received from 1st June 2018 are as follows:

1. Tax Rates for a citizen employee

2. Tax Rates for a Non-citizen employee Employees

3. Emolument paid under specific program or approved project is 3 % of Seychellois emoluments paid financed by means of overseas grant for specific approved project.

4. Non-Monetary Benefits tax payable by an Employer is 20%

How is Income Tax calculated?

Calculate the tax payable from each tax bracket depending on the income. Add together all taxes incurred in each tax bracket.
  • Example 1: A citizen employee earning SR 12,000 per month is given below:
    Calculations

    Tax Payable per Bracket
    i. The first SR 8,555.50 has a tax rate of 0% = SR 0

    SR 0
    ii. From 8,555.50 to SR 10,000 the tax rate is 15%

    SR 10,000 – SR 8,555.50 = SR 1,444.50

    SR 1,444.50 × 15% = SR 216.68

    SR 216.68
    iii. From SR 10,000 to SR 12,000 the tax rate is 20%

    SR 12,000 – SR 10,000 = SR 2,000

    SR 2,000 × 20% = SR 400

    SR 400.00
    Total Tax Payable

    SR 0 (From bracket 1) + SR 216.68 (From bracket 2) + SR 400 (From bracket 3)

    SR 616.68


  • Example 2: A Non-citizen earning SR 12,000 per month is given below:
    Calculations

    Tax Payable per Bracket
    i. From 0 to SR 10,000 the tax rate is 15%

    SR 10,000 × 15% = SR 1,500

    SR 1,500.00
    ii. From SR 10,000 to SR 12,000 the tax rate is 20%

    SR 12,000 – SR 10,000 = SR 2,000

    SR 2,000 × 20% = SR 400

    SR 400.00
    Total Tax Payable

    SR 1,500 (From bracket 1) + SR 400 (From bracket 2)

    SR 1,900.00
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:
  • Lodge monthly Business Activity Statement (BAS)
  • Lodge monthly payroll (electronically for 10 or more employees)
  • Provide employees with a pays lip
  • Apply different withholding rates for citizen employees
  • Apply different withholding rates for non-citizen employees
  • Update and submit employee status form to the 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. SRC is encouraging employers to submit their payroll electronically via either one of the following method.
  1. Government portal
  2. Pen drive
  3. Email: payroll.pension@src.gov.sc
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 Commission by the 21st day after the month the withholding occurred.

What would be my responsibilities as an employee?

Employees can retain all pay slips and check whether the correct amount of tax has been deducted using the SRC calculator on our website or tax tables. Employees 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.

Exemptions

Non-taxable Emoluments

Description
An emolument derived by a person entitled to privileges under the Privileges and Immunities Act.

An emolument received by someone under the conditions of the Privileges and Immunities Act. E.g. expatriates working for the Embassies.
An emolument being a reimbursement for the use of a motor vehicle.

An amount of money received as a reimbursement for using the employee’s personal money for the use of the motor vehicle. E.g. the company rent a car for work purpose and the employee uses his/her personal money to fuel the car.
An emolument being a reimbursement by an employer of an employed person for the cost of using the employee’s own motor vehicle for the benefit of the employer.

An amount of money received as a reimbursement for using personal motor vehicle for work purpose. E.g. cost of the employees fuel to go to the destination.
(subject to certain conditions)
Per diem

An amount of money given by an employer to an employee when they travel for work purpose. This amount is given to cover the daily expenses of the employee while on mission.
(subject to certain conditions)
Shoe allowance

An amount of money given to buy a shoe as part of the company’s uniform.
(subject to certain conditions)
A bonus

An amount of money given to an employee as a reward for their good performance.
(subject to certain conditions)
compensation

An amount of money given by the employer to an employee after he/she ceases employment with the company.
(subject to certain conditions)
A service charge

An amount added to customer’s bill to pay for the service that they are receiving. This amount is then shared amongst the employees. This is usually found in the tourism sector.
(subject to certain conditions)
Retirement pension

An amount of money given by the state and the Seychelles pension fund to retired individuals and individuals who are diagnose to be invalid (cannot work).
Gratuity payment

An amount of money received by an employee for their continuous employment .E.g. every 5 years.
Overtime

An amount of money received for working extra hours.
(subject to certain conditions)
A 13th month pay

An amount of money equivalent to the basic emolument of an employee that is given after each year (12 month) of continuous employment.
(subject to certain conditions)
An end of contract payment

An amount of money received after completion of a contract period.
(subject to certain conditions)


Refer to the second schedule of the Income and Non- Monetary Benefits Tax (Amendment) Act, 2017 (Act 27 of 2017) and S.I 5 of 2018.

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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