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Seychelles Introducing New Standard Business Tax Rates and Other Changes as Part of Budget for 2022 — Orbitax Tax News & Alerts

The Seychelles Ministry of Finance, Economic Planning, and Trade has published the documents for the National Budget 2022, including the Budget Speech delivered on 12 November 2021. The main proposed tax measures of the budget include:

  • New standard business tax rates as first announced as part of Budget 2021 will be introduced from January 2022, with the following rates applied for most sectors, including those previously eligible for reduced rates:
    • 15% on profits of up to SCR 1 million (down from 25%); and
    • 25% on profits above SCR 1 million (down from 30%);
  • The upper tax rate on businesses in telecommunication services, banking, insurance, alcohol, and cigarette production will be maintained at 33% on profits above SCR 1 million;
  • A grace period on tax payment for the agricultural sector will be provided for three consecutive years, starting from the 2021 tax period;
  • The presumptive tax rate option for small and medium enterprises with revenues of under SCR 1 million per annum will be maintained;
  • The accelerated depreciation rate of 145% over five years on capital investment, apart from buildings, will be reduced to 100%;
  • The 200% deduction for salaries of employees that graduated from professional centres will be reduced to 125%; and
  • The 150% deduction for salaries of students from professional centres who are on part-time employment will also be reduced to 125%.

Further details on the implementation of these measures will be published once available.