International Tax ‎

The Seychelles Revenue Commission (SRC) as the competent authority is tasked with the ‎responsibility of ensuring that Seychelles complies with its international tax and financial obligations ‎including the:‎

  • Exchange of Information on Request (“EOIR”);‎
  • Automatic Exchange of Information (AEOI) Common Reporting Standards (CRS) for financial ‎institutions;‎
  • Country by Country (CbCr) Reporting for multinationals under CbC Multilateral Competent ‎Authority Agreement; and
  • Foreign Account Tax Compliance Act (FATCA) introduced by the United States (US) in 2010 to ‎reduce tax evasion by its citizens.‎

The EOIR provides a framework for international exchange of foreseeably relevant information on ‎request for the administration or enforcement of the domestic tax laws of a requesting party. To ‎ensure that the exchange of information functions effectively, there should be administrative ‎measures in place. Once in place and in operations, the EOIR standard provides the foundation for ‎effective international co-operation between tax authorities to tackle offshore tax evasion. ‎

Seychelles at present has an EOI network that covers 45 jurisdictions, 28 covered by a Double Taxation ‎Conventions (DTC), 13 by a Tax Information Exchange Agreements (TIEA). Additionally, Seychelles has ‎also signed the Convention on the Mutual Administrative Assistance in Tax Matters in 2015. ‎

The Global Forum conducts peer reviews to assess the standard of exchange of information on ‎request (EOIR) and to rate the jurisdictions’ compliance. Assessment teams consisting of ‎representatives from Global Forum member jurisdictions and members of the Global Forum ‎Secretariat, carries out systematic examinations and assessments of the jurisdictions’ legal and ‎regulatory frameworks for EOIR as well as the practical application of their frameworks. The objective ‎of the review is to help jurisdictions to effectively implement the international EOIR standard, improve ‎their policymaking, adopt the best practices and comply with established standards and principles.‎

Four distinct ratings can be allocated to a jurisdiction upon completion of a full peer review as follows:‎

  • Compliant;‎
  • Largely Compliant;‎
  • Partially Compliant;‎
  • Non-Compliant.‎

Seychelles was rated Largely Compliant in the first supplementary review held in 2015 and Partially ‎Compliant in the second round of the peer review was done in 2019.‎

Element First Round Supplementary Report (2015) Second Round EOIR Report (2019)
A1 Availability of Ownership Information   LC PC
A2 Availability of Accounting Information   LC NC
A3 Access to Information   C LC
B1 Access to Information   C PC
B2 Rights and Safeguards   C C
C1 EOIR Mechanisms   C LC
C2 Networks of EOIR Mechanism   C C
C3 Confidentiality   C C
C4 Rights and Safeguards   C C
C5 Quality and Timeless of Responses   LC PC
Overall Rating LC PC

CRS was developed in response to the G20 request and approved by the Organization for Economic ‎Cooperation and Development (OECD) Council on the 15th July, 2014. Jurisdictions are required to ‎obtain information from their financial institutions and automatically exchange that same information ‎with other jurisdictions on an annual basis. Seychelles committed to the first exchange of information ‎in 2017.‎

    CRS sets out:‎

  • The financial account information to be exchanged.‎
  • The financial institutions required to report.‎‎
  • The different types of accounts and taxpayers covered.‎
  • The diligence procedures to be followed by financial institutions.‎‎

The standard for SRC comprises of four key components as follows: ‎‎

Due Date for CRS Submissions
The due date for submission is on the 30th June of every year. On a case-by-case basis, the ‎Commissioner General may authorize an extension for the submission of CRS submissions.‎

Main Obligations of CRS

  • As per S.I 1 of 2015, a Reporting Seychelles Financial Institution shall report to the Seychelles ‎Revenue Commission such information as prescribed under Part I of Schedule I in respect of ‎Reportable Accounts maintained by that Reporting Seychelles Financial Institution in a calendar ‎year. The reporting shall be in the form and manner laid down in regulation 5(3).‎
  • An account listed under Schedule 3 is not a Reportable Account for the purposes of these ‎Regulations. ‎
  • A Reporting Seychelles Financial Institution shall automatically report to the Seychelles ‎Revenue Commission not later than the 30th June of the year following the end of the previous ‎calendar year in an electronic format following the schema referred to under the Common ‎Reporting Standard by using the e-platform as provided by the Seychelles Revenue ‎Commission.‎
  • Each Reporting Seychelles Financial Institution shall register on the e-platform available on the ‎Seychelles Revenue Commission website and submitting the following information:‎
    • ‎The name of the Reporting Financial Institution;‎
    • ‎The categorization of the Reporting Financial Institution as determined in accordance ‎with these regulations; and
    • ‎The full name, address, designation and contact details of the individual authorized ‎by the Reporting Financial Institution to the Reporting Financial Institution’s principal ‎point of contact for all purposes of compliance with these regulations.‎
  • The Revenue Commission shall maintain an up-to-date register of Reporting Seychelles ‎Financial Institutions mentioned in sub regulation (4) (a) and shall make it available for ‎verification to public on demand.‎
  • Any changes to the information under sub regulation 5(4) shall be amended on the e-‎platform immediately.‎
  • In determining the balance or value of an account denominated in a currency other ‎than US dollars for the purposes of these Regulations, the Reporting Seychelles ‎Financial Institution shall translate the relevant US dollar amount described in Schedule ‎I to these Regulations into the other currency using reference rate (mid-rate) as ‎published by the Central Bank of Seychelles as of the last day of the calendar year ‎preceding the year in which the Reporting Seychelles Financial Institution is ‎determining the balance or value.‎
  • Where the Seychelles Reporting Financial Institution does not identify any reportable ‎account in a particular calendar year, the Seychelles Reporting Financial Institution shall ‎lodge a nil return in the same manner as prescribed under regulation 5(3).‎

CbCr is part of Action 13 of the Organization for Economic Cooperation and Development (OECD) Base ‎Erosion and Profit Shifting Action Plan (BEPS). The intention of CbCr is to improve transparency for tax ‎administrations by providing them with sufficient information to conduct high-level transfer pricing risk ‎assessments. Seychelles became a signatory of the Multilateral Competent Authority Agreement on ‎the Exchange of Country-By-Country Reports (CbC MCAA ) on 9th July, 2019.‎

Due Date for CbCr Submissions
The due date for submission is on the 30th June of every year. On a case-by-case basis, the ‎Commissioner General may authorize an extension for the submission of CRS submissions

The Foreign Account Tax Compliance Act (FATCA) was introduced by the United States (US) in 2010 ‎with the purpose of reducing tax evasion by their citizens FATCA requires financial institutions outside ‎the US to report information on financial accounts held by their US customers to the US Internal ‎Revenue Service (IRS). These requirements are contained in the relevant US Treasury Regulations (US ‎Regulations). The information to be reported by foreign financial institutions is equivalent to that ‎required to be reported by US persons in their US tax returns.‎

Seychelles signed the agreement with the US for implementation of FATCA and was meant to enact ‎the necessary legislation for financial institutions holding accounts for US citizens to starting reporting ‎in 2020 but due to the Covid-19 pandemic it requested for an extension of time.‎ Under the terms of the agreement, Seychelles Financial Institutions will provide the Seychelles ‎Competent Authority (which is SRC) with the required information. The Seychelles Competent ‎Authority will then forward this information to the US Competent Authority.‎