The Seychelles Revenue Commission (SRC) has over these past few months met with several organizations, as part of its educational campaign to increase awareness about its upcoming new payroll template.
To address certain complexities with regards to the applications and computations of specific domestic taxes, the Commission has also seized these opportunities to deliver customized sessions to several businesses upon request.
The sessions, facilitated by professionals from the organizations tax division, covered a wide range of topics and issues currently being experienced by businesses.
To provide clarity and to ensure businesses remains compliant to their obligations by following the right procedures, besides introducing the upcoming payroll template other topics addressed focused on the implementation of withholding tax and its payment terms, a refresher in regards to income tax for citizens and non-citizens of Seychelles, plus the obligations of employees and employers.
The application of the double taxation avoidance agreements (DTAA) towards income tax, the changes with the non-monetary benefits and monetary benefit taxes with regards to per diem, bonus, 13th month pay, income received in arrears or as back payment amongst others were also discussed throughout the forums.
To note, following changes to the Income and Non-Monetary Benefit Tax Act 2022 (Act 32 of 2022) effective 1 January 2023, any income received by an employee from an employer in a lump sum, in arrears or as a back payment, is being treated as if it was received in the month to which the emoluments should be attributed.
For example: If an employee is entitled to an inducement allowance as from January 2023, and the inducement is finally received in July 2023 as a ‘back pay’ covering the prior months, the total sum received will be spread over the 7 months (January to July) with the progressive income tax rates applicable per month.
Pursuant to the law, from 1 January 2023, in accordance with Schedule 4 of the Income and Non-Monetary Benefit Tax Act, an employer is also liable to pay the tax 15 percent of the value of a non-monetary benefit provided to an employed person (reduced from 20%) in respect of each non-monetary benefit provided to the person employed.
Customized workshops conducted across Mahe, Praslin and La Digue involved the participation of both private and government sectors, including the Ministry of Education, Ministry of Health, University of Seychelles, The Guy Morel Institute, and the Department of Foreign Affairs department whereby a customized session was delivered to members of the diplomatic corps and consular about the computation of the value added tax, its refund procedures and implementation upon importation.
Dedicated sessions were also held with the VCS Group as well as staff members of the Central Bank of Seychelles highlighting the aforementioned topics. Companies such as Cable and Wireless and others have also booked their upcoming sessions with the Commission.
The interactive sessions, being held mostly at the premises of the requested business also allows the opportunity for staff members to meet with key professionals from SRC on a one-to-one to ask questions, clarify doubts, and obtain clear guidance about tax procedures. Interested organizations willing to learn more about SRC’s tax and customs services are invited to book their slot via email at tesd@src.gov.sc or by phoning 4294934 / 4293410 / 4294909 during working hours.