The Business Tax rate is 0% on the first SR 150,000 of taxable income in respect of a sole trader and a partnership business, 15% on the next SR 850,000 of taxable income and 33% on the remainder. Companies do not have a tax free threshold. The Business Tax rate is 25% on the first SR 1,000,000 of taxable income and 33% on the remainder.
The Seychelles has a territorial basis of taxation. Hence, a non-resident company’s offshore profits are tax exempt.
Transfer Pricing provisions are contained in section 54(1) of the Business Tax ACT, 2009, according to which the tax authorities may distribute, apportion, or allocate income or gain and expenses between related businesses as is necessary to reflect the outcome that would have arisen in a transaction between the independent persons dealing with each other at arm’s length.