- Seychelles Again Delays Individual Income Tax Changes 20th February 2017
In his State of the Nation Address on February 14, President Seychelles’ Danny Faure announced that the implementation of a progressive personal income tax regime will be delayed to January 1, 2018.
Under the new regime, a SCR8,555.50 (USD630) tax-exempt threshold will be introduced, but will not be available to expatriates. Income tax above that threshold will be subject to progressive rates of either 15 percent, 20 percent, or 30 percent.
Its introduction had already been delayed to July 1, 2017, rather than January 1, 2017, in the 2017 Budget announced last December. The further six-month delay, according to the President, is down to “more preparation” being necessary.
He also disclosed that, within its continuing policy to reduce the cost of living in Seychelles, the Government will revise the list of goods which will not be subject to value-added tax. The revised list, which will include new products, will be published as from March 1 this year.
- Seychelles Issues Corporate Social Responsibility Tax Guide 23rd January 2017
The Seychelles Revenue Commission (SRC) has issued a draft public ruling to provide guidance on the definition of “turnover” for the calculation of liability to the Corporate Social Responsibility Tax (CSRT).
The 0.5 percent CSRT is imposed on businesses with an annual turnover equal to or exceeding the liability threshold of SCR1,000,000 (USD75,100). Funds raised through the tax mostly fund community projects.
In the legislation that established the CSRT, turnover is defined as “the gross receipts from carrying on of business.” However, the meaning of “gross receipts” is not therein defined.
The SRC therefore indicated that “gross receipts” should be taken to mean “the total revenue of a business, regardless of the sources or forms such revenue takes, and will include all active income (i.e. operating income, derived from its core business activity), all passive income (i.e. non-operating income, derived from secondary sources), and all amounts derived by a business which is beneficially held.”
The SCR further noted that the definition of turnover it has adopted for CSRT purposes does include, for example, capital revenue (proceeds from the sale of tangible or intangible assets), dividends received by a taxpayer from shares held in other companies, realized foreign exchange gains, and grants and donations received from third parties.
On the other hand, amounts held on trust, and deposits or currencies held by banks and money changers, are included in items that the SRC does not consider to be revenue, and therefore not to be considered as turnover for CSRT purposes.
It is emphasized that this definition of turnover is specific to the CSRT, and may not apply to turnover as referred to in any other revenue laws, such as the Business Tax Act.
- 50 Countries To Automatically Exchange Tax Data: OECD 29th December 2016
Over 50 jurisdictions have committed to automatically exchange tax information under the OECD’s Common Reporting Standard.
The OECD said there are now more than 1,300 bilateral relationships in place across the globe, with most of them based on the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (the CRS MCAA).
Countries will again be able to decide on a further countries with which to automatically exchange tax-related information in two rounds in March and June 2017.
OECD said that 101 jurisdictions have agreed to start automatically exchanging financial account information in September 2017 and 2018.
The OECD said on December 22: “Today’s second wave of activations of bilateral exchange relationships [which added 350 to the tally] is a further crucial step towards the timely implementation of the OECD-developed international standard for the automatic exchange of financial account information, the CRS, and reflects the determination of jurisdictions around the world to deliver on their political commitment to fight tax evasion,” the OECD said.