Seychelles as an Offshore Jurisdiction: The weather seems to be always perfect in Seychelles. The beautiful beaches and the sunny atmosphere are enough reasons to attract a pool of tourists to explore it, but Seychelles is more enjoyed because of its advantageous offshore jurisdiction. Those who have registered their companies in the region are already very satisfied with their decision to set-up an investment in the region. You will benefit the same, if only you will take time to open your mind into the many business possibilities it is willing to offer you.
Minimized Tax Liability: The Territorial Basis of Taxation Approach
It is impossible to find a country that doesn’t demand for tax, but Seychelles makes this possible. It is necessary to keep any government running, but there are certain countries that allow you to establish a company yet pay low tax rate. Here is a glimpse of the tax rates applied in Seychelles:
Exemption from capital gains, dividends, interests, and types of payments that may have been received abroad
Business Tax Rates for Sole Traders and Partnerships Operating in Seychelles
- No tax will be applied for sole traders and partnerships that has an insurance threshold of only $150,000
- 15% tax rate for sole traders and partnerships that has an insurance threshold of $850,000
- 33% tax rate for sole traders and partnerships that has an insurance threshold of over $1,000,000
Business Tax Rates for Companies and Trusts Operating in Seychelles
- 25% tax rate for companies and trust for their first $1,000,000 insurance threshold
- 33% tax rate for the additional amount exceeding their $1,000,000 insurance threshold
Nevertheless, it is important to note that there are some business entities operating in Seychelles that may be given a Certificate of Approval that will allow them to be exempted in some or all the business tax rates implemented in the region, as well as companies that are included in the International Trade Zone.
Additional Tax Advantages of IBC in Seychelles
The following are additional reasons why more investors are flocking Seychelles to seek registration for their companies:
- Simplicity of company registration and reporting
- Capital losses filed by the company are not considered deductibles
- Losses can be carried forward up to five years, but it cannot be carried back
- Depreciation of Office buildings are calculated at a rate of 50% for the first year, 25% for the next two years; while hotels depreciation are calculated at a rate of 20% for the first year and 10% for the next eight years, and the rest of the buildings constructed in Seychelles receive a rate of depreciation of 4%.
- Thin capitalization except for banks and insurance companies, wherein nominal equity has to be applied.
- Asset protection by upholding anonymity of principal owner, which is enjoyed by many prominent names as part of their goal to properly organize their assets and transactions without legal constraints.
Offshore Jurisdiction Benefits Enjoyed in Seychelles
The attractive tax incentives given by Seychelles to their investors are truly inviting, but with the additional offshore jurisdiction benefits make it too irresistible.
Seychelles is easily linked to major destinations in Europe including Rome, Paris, London, Munich, and Zurich; Asia, primarily Singapore; India and the Persian Gulf, connecting Mumbai and Dubai; and South Africa in Johannesburg. Major airplane companies operate in the region like British Airways, Air Seychelles, Kenya Airways, Air France, Air Mauritius, and Condor that guarantees a minimum of 100 flights to and from Seychelles.
Stable and Reliable Communication System
It is vital for any offshore company to closely monitor the movement of their transactions. This is made possible through the international communication services provided by Air Tel and Cable & Wireless. The competition between the two guarantees more efficient and more reliable level of communication for both fixed line and mobile phone services together with the leading Internet Service Providers, Atlas and Kokonet, giving excellent internet coverage to everyone’s advantage.