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Tourism marketing Tax (TMT)

What is the Tourism Marketing Tax (TMT)?
The Tourism Marketing Tax (TMT) was introduced on the 1st January 2013. This was put in place to get the private sector to contribute more towards tourism marketing. The purpose of this tax is to fund promotion activities in order to market Seychelles as the number one tourist destination in the world.

Who should pay the TMT?
Tourism Marketing Tax is imposed on entities whose annual turnover equals to or exceeds SCR 1,000,000. Businesses falling under the following categories will be liable to pay Tourism Marketing Tax:

All tourism operators, namely:
  • Hotels, guest houses, self-catering establishments;
  • Cafés or restaurants;
  • Fixed or rotary wing passenger air transport services;
  • Domestic ferry services for the transport of freight or passengers;
  • Boat or yacht charterers (including live-aboard);
  • Car hire operators;
  • Underwater diver operators or dive centres;
  • Water sports operators;
  • Travel agents;
  • Tour operators;
  • Tour and or tourist guides;
  • Equestrian operators;
  • Banks;
  • Insurance companies (excluding brokers); and
  • Telecommunication service providers.
  • Building contractor (class 1)
  • Casino operators
What is the rate of the TMT?
The rate of Tourism Marketing Tax payable by a business with an annual turnover of SCR 1, 000,000.00 or more is 0.5%.

Example 1:
A business will pay 0.50% on its monthly turnover of SCR 100, 000.00 which will be: SCR 100,000.00 × 0.50% = SCR 500.00

Example 2:
(a) A non-VAT registered entity:
In April 2017, a company’s turnover is SCR 100,000.00. Its TMT liability will be 0.5% of SCR 100,000.00 which is SCR 500.00

(b) A VAT registered entity:
In April 2017, a VAT registered company’s turnover is SCR 100,000.00. Then approximately SCR 15,000.00 of the SCR 100,000.00 will be VAT.
Its TMT liability will be calculated as 0.5% of the VAT exclusive turnover which is 0.5% of SR 85,000 (100,000.00 - 15,000.00), which is SCR 425.00

There are certain businesses that are classified as intermediaries for VAT purposes, and for them, the TMT will be applicable on their commission.

How and when is TMT paid?
Businesses that are required to pay the TMT will have to make payment on a monthly basis in their Business Activity Statement. The TMT is calculated based on the gross receipts of the business during that month, less any VAT collected.

What if the turnover for a year differs compared to the previous years?
The TMT is to be paid by companies making an annual turnover of SR 1,000,000.00 or more. If your annual turnover was over SR 1,000,000.00 in 2016, a TMT liability will be calculated on your 2017 turnover, irrespective what the 2017 turnover is.

In other words:
  • Eligibility is determined based on previous year’s turnover, and
  • Tax payable is calculated on the current year turnover.
What if I overpay the TMT?
Where your TMT payment is in excess of your actual TMT liability, the excess amount:
  • a) Is kept as a credit against future TMT liabilities, or
  • b) Refunded to you, if your current annual turnover threshold falls below SR 1,000,000.00
How will TMT be calculated if a person owns more than one business?
When a person owns more than one business, all the businesses will be considered as one single business. For example, if a person has three businesses, the turnover of all three businesses will be combined and TMT will be payable on the total turnover for all three businesses.

* Tourism Marketing Tax Guidelines 2017

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