The independent democratic republic of Seychelles is a tax haven with a steady political system that grants one of the most attractive complete offshore incorporation packages, shaped and supported by one of the most promising legal and regulatory authorities in the global offshore platform.
Seychelles continues to flourish as a global offshore financial centre. With its efficiency and command of the offshore industry, its wide range of offshore banking products and services, and its commitment to persistent innovation, Seychelles is poised to be the premier selection in the offshore world.
If you are searching for a tax haven with a firm secrecy policy, attractive offshore business legislations, Seychelles may be the perfect option for your next offshore company incorporation.
Seychelles Offshore Company
Identified as a tax haven, Seychelles is a preferred business destination for investors who need to upgrade their businesses by making the tax planning more productive and guarding their assets by Seychelles offshore company incorporation. In this regard, offshore company incorporation in Seychelles could be extremely beneficial, and a preferred form of business structure for international entrepreneurs is setting up the IBC offshore in Seychelles.
Advantages of Seychelles as a Tax Haven
As a rapidly elevating offshore tax haven, Seychelles flaunts the following advantages for business people and international investors to set up offshore companies:
- Favourable corporate laws allowing an array of modern, sophisticated, & flexible offshore products
- Solid banking confidentiality, considered one of the best jurisdictions for shielding the privacy of its foreign investors
- Holds 46 tax treaties, all submissive to OECD standards
- Expanding Double Taxation Avoidance Treaty Network
- Names of company shareholders and directors are not stated in the public registry
- Offers mild policy on reporting interest incomes to overseas tax officials
- Fiscal Incentives
- No exchange controls
- Work permit and residence permit are available for foreign investors
- Issues an innovative 'Special Licence' company that could be used to take full advantage of Seychelles' expanding network of double taxation agreements
The above listed are a few of the many advantages of the Seychelles jurisdiction. Here is our latest blog on Why Seychelles Offshore is a Tax Haven to get a better insight on the same.
Features of Seychelles Offshore Law & Regulations
- Hybrid between Common Law and Civil Law
- Affordable charges for government licensing
- Special License Companies (CSL) – resident companies with 1.5% tax
- Tax-free International Business Companies
- Modern, up-to-date body of laws that permits for and regulates offshore companies, offshore banking, protected cell companies, mutual funds, limited partnerships, and hedge funds
- Incorporate (form an IBC) in only 24 hours
- Rapidly-expanding network of Double Taxation Avoidance treaties with Zambia, Vietnam, UAE, Thailand, South Africa, Qatar, Oman, Monaco, Mauritius, Malaysia, Indonesia, Cyprus, China, Botswana, Barbados, and Bahrain.
- The commitment of the government to positioning Seychelles as a top international offshore financial centre
Offshore Taxation in Seychelles
- If appropriately structured, a Seychelles non-resident company’s offshore profits are lawfully tax-exempt
- A resident company is taxed at a corporate income of 25% on the revenue generated in Seychelles. However, there are no interests, dividends, capital gain tax, gift, inheritance, property or estate taxes. A company formed in Seychelles can benefit from the double tax treaties
- Withholding tax for the Seychelles companies is levied as mentioned:
- 15% on non-resident interest;
- 15% on non-resident dividends;
- 15% on non-resident royalties;
- 33% on payments of interests by the financial institution at the maturity of a bearer security
- An IBC is completely tax-free for twenty years from the Seychelles business setup date, given the company does not enter into business with the local residents. However, the company is permitted to conduct business with other IBCs. IBCs could not benefit from the double tax treaties
- An IBC cannot have benefits of Seychelles double taxation agreements
- A Seychelles Special License Company is a domestic company establishment with a special license permitted to carry out specific business as per the regulations. A corporate income tax of 1.5% is levied on its global profits. Investors pursuing a CSL company establishment could benefit from Seychelles’ double taxation treaties with numerous countries, including China, Indonesia, Malaysia, and Thailand
- Customers should note, the beneficial owners of the CSL are informed to the Seychelles Financial Services Authority during the company incorporation process. A register of directors and shareholders is also to be kept with the agent of the company in Seychelles
- Seychelles has signed 28 DTAs globally, minimizing withholding tax on fund transfers between nations
- In Seychelles, there is no personal income tax. Employment income gained by individuals is not subjected to income tax. There are no corporate or individual capital gains, net worth or inheritance taxes
- By the Seychelles Business Tax Act 2007, each Seychelles IBC must give a signed Annual Declaration mentioning the company's location, accounts, and other financial documents. Filing annual accounts is not required
- Our Clients must be aware of their corporate and personal tax obligations in their nation of residence and domicile, and they will fulfil those obligations yearly.
- Seychelles ranked 44th on the Corporate Tax Haven Index of 2019. The index states that Seychelles’ corporate tax policies are ‘corrosive’ to the universal economy.
While advancing towards the offshore company incorporation process, one needs to ensure that the legal procedures are performed accordingly without error. One of the feasible ways to step forward is by having a word with a professional advisor who can guide you respectively. Take a look at the Core Reasons for Hiring an Offshore Business Consultant, which would help you to understand the advantages that you could avail.
With a host of benefits available, you could choose Seychelles to get started with your offshore business. We here at Business setup worldwide provide tailored solutions for beginning a business in Seychelles. If you need any support regarding business setup, then contact us today. We’ll be happy to help!