- 100 States Now Expected To Swap Taxpayer Data In September 9th July 2018
More than 100 jurisdictions will automatically exchange financial account information in September 2018 after a significant increase in the number of countries participating in the Convention on Mutual Administrative Assistance in Tax Matters, the OECD has said.
Announcing the publication of a new set of bilateral exchange relationships established under the Common Reporting Standard Multilateral Competent Authority Agreement (MCAA CRS), the OECD said on July 5 that the international legal network for the automatic exchange of offshore financial account information under the CRS now covers over 90 jurisdictions, with the remaining dozen set to follow suit over summer.
“The network will allow over 100 committed jurisdictions to exchange CRS information in September 2018 under more than 3200 bilateral relationships that are now in place, an increase of over 500 since April of this year,” the OECD said.
According to the organization, the last two months have seen a significant increase in the number of jurisdictions participating in the Convention, which is the main international instrument for the exchange of information in tax matters, including exchanges upon request, as well as the automatic exchange of CRS information and Country-by-Country Reports.
Since early May, Macedonia, Grenada, Hong Kong, Liberia, Macau, Paraguay, and Vanuatu have joined the Convention, bringing the total number of participating jurisdictions to 124. In addition, the Bahamas, Bahrain, Grenada, Peru, and the United Arab Emirates have deposited their instruments of ratification.
“These recent developments show that jurisdictions are now completing the final steps for being able to commence CRS exchanges by September 2018, therewith delivering on their commitment made at the level of the G20 and the Global Forum,” the OECD said.
- Seychelles Introduces Progressive PIT Regime 18th June 2018
The Seychelles introduced a new progressive income tax system for individuals on June 1, 2018.
For citizens only, the first SCR8,555.50 (USD629) of taxable income is exempt from income tax. A 15 percent rate applies on income up to SCR10,000, starting from the first rupee earned for non-citizens. Income up to SCR83,333 is subject to a 20 percent rate and a 30 percent applies on income above that threshold.
To support taxpayers and employers to calculate income tax liability, the Seychelles Revenue Commission has released a calculator.
Subject to conditions set out in the second schedule of the Income and Non-Monetary Benefit Tax Act, the following payments are not taxable income under the new regime:
- an emolument derived by a person entitled to privileges under the Privileges and Immunities Act;
- an emolument being a reimbursement for the use of a motor vehicle;
- 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;
- day-to-day living expenses for traveling workers (per diem);
- a retirement pension;
- payments for overtime; end of contract payments;
- a uniform/shoe allowance;
- a bonus;
- a service charge;
- a gratuity payment;
- and a 13th-month payment.
Compliance obligations have changed since the introduction of the regime. A new payroll form has been designed and the monthly Business Activity Statement (BAS) has been updated.
The SRC said that the two forms must be lodged within 21 days following the end of the applicable month. The payroll form has been developed to assist employers with the calculation of their monthly income tax withholding obligations, the SRC said.
For employers with fewer than 10 employees, the payroll statement can be lodged either manually or electronically using the SRC’s E-Service facility. Those with 10 or more employees must lodge the payroll statement electronically.
Firms must also lodge an employee status report. The first deadline is July 21, along with the payroll statement. After this first deadline, the employee status report should be updated and submitted on January 21 every year.
- Seychelles Needs To Redouble BEPS Efforts: UN Expert 10th April 2018
The Seychelles has been told to deploy more resources to implement recommendations from the OECD on base erosion and profit shifting.
Ingela Willfors, a United Nations tax expert from the Swedish Ministry of Finance, held discussions on implementation with the Seychelles’ Minister of Finance, Trade, and Economic Planning and in particular on revising the territory’s double tax agreements through the BEPS multilateral instrument to implement tax treaty-related measures to prevent BEPS.
Willfors said, following an earlier five-day visit, she had identified that Seychelles currently lacks the resources and capacity to effectively implement the OECD’s recommendations. She recommended that authorities focus on those measures that must be implemented to meet international best standards – namely the BEPS minimum standards, on preventing treaty abuse, the introduction of country-by-country reporting rules, improving dispute resolution mechanisms, and tackling harmful tax practices.
The Seychelles has for the past two years received support from Sweden on BEPS, as part of a twinning program.
The Government said the territory this year faces the prospect of a peer review on its implementation of measures to prevent treaty abuse (BEPS Action 5); on countering harmful tax practices more effectively (Action 6); and the implementation of country-by-country reporting (Action 13). It anticipates that its measures to improve dispute resolution mechanisms will be reviewed in two years.