The Seychelles Revenue Commission (SRC) has today introduced a specific payroll to be completed by businesses for the thirteenth month pay.
The three main sections outlined on this specific payroll include:
- Section 1: Employee’s details – Employee’s name, identity number, pension number, start and end date of duty, gender, job title, citizenship and applicable rate.
- Section 2: Taxable and non-taxable thirteenth month pay as applicable – Employees basic salary, 13th month pay amount exceeding the tax free threshold of SCR45,450 and 13th month pay amount equal or below the tax free threshold of SCR45,450.
- Section 3: Total tax withheld to be remitted to SRC – Income withheld, net of tax emolument and total amount of tax to be remitted.
The thirteenth month pay, is an exempt emolument (tax free) under the Income and Non-Monetary Benefits Tax Act (Cap 273) subject to the amount not exceeding SCR45,450 as prescribed under Section 46C of the Employment Act.
Although there are no deductions such as loans, pension contribution and others from the thirteenth month pay, in line with Section 3(d) of the Employment (Amendment) Act 2023, any amount of the thirteenth month pay in excess of the prescribed salary of SCR 45,450 would not be an exempt emolument under the Income and Non-Monetary Benefits Tax Act.
As a result, businesses with employees earning a basic salary of SCR45, 451 and above shall be eligible to provide their employees the thirteenth month pay (at the discretion of their organization). The limit for the tax free threshold on the thirteenth month pay shall be up to SCR45,450 only and any amount in excess of the prescribed amount must be taxed at a flat rate of 15%.
The new thirteenth month payroll template is available on the SRC website at src.gov.sc/download/ through the download tab in the tax form section. The template can also be requested via email to advisory.center@src.gov.sc.
Businesses must complete and lodge the thirteenth month payroll on or before 21 January, 2024 via email to pit@src.gov.sc copying banktransfer@src.gov.sc for those sending payments through banks online portal, as this specific payroll is not available via the eservice/e-gov platform.