What are the taxation policies for offshore companies registered in Seychelles?
The Tax regime attracts investors to set up offshore company with different types of activities in complete privacy and with the guarantee that their assets are protected. Seychelles has a flexible financial environment, which includes a favorable tax system, mandatory accounting, and financial record keeping, which mandates the annual filing of returns. As business owners and entrepreneurs, we need to be aware of these policies so that they are compliant with the laws and international standards.
Seychelles implements a territorial tax system, which implies taxes are only imposed on income sourced within the country. The Seychelles IBC tax rate is 0%, which means offshore companies in Seychelles can optimize their tax flow and increase their profits. In addition, company income derived from services outside of Seychelles will not be taxed on dividends, interests, royalties, or other payments paid out to its stakeholders.
There are many legal requirements for a business owner. They need to maintain a proper accounting record that reflects the financial status of their company. The International Business Companies (Amendment) Act mandates that these records about the company must be maintained for seven years from the transaction’s completion date. This is important for an annual audit and to report income from Seychelles.
As part of the company’s compliance point of view, the business owners must ensure the company files annual returns and renewal fees to maintain its good standing. The company’s annual return should include the company’s financial statement. Filling these returns on time helps avoid penalties and ensures your company remains in good legal standing in Seychelles.
