As stipulated in the Revenue Administration Act, 2009 (S.I 138 of 2022), since 1 April 2023, the Seychelles Revenue Commission (SRC) has started to impose penalties on businesses operating in Seychelles failing to register with the organization in the approved form and manner.
To provide unregistered businesses ample time to come forward to register their business activity with SRC, recent changes in the law is now permitting businesses a total of 28 days (instead of 14 days as per previous law) from the date of commencement of business, to complete this process.
Pursuant to the new law, the Commissioner General has the power where an application for registration in respect to a business has not been made, but is of the opinion having regard to the activities carried on or carried out by such business, that such business is required to be registered under these regulations, and, after affording such person an opportunity of being heard, register such business with effect from such date as may be determined by the Commissioner General.
In addition, to ensure SRC’s registration record is kept up-to-date with the latest information, the Commissioner General may, in processing an application for registration, request additional information from the applicant. Hence, to remain compliant to the law, taxpayers must make certain to advise SRC of any changes which may have occur with any information shared upon registration of their business, within 28 days of the change occurring; or provide any information requested by the Commissioner General within 28 days of the request.
In regards to businesses suspending their activity and tax obligation, in line with the (S.I 138 of 2022), taxpayers are now being granted a total of 14 days to request for suspension of their business activity and tax obligations to the Commissioner General. The request must be submitted in writing with clear explanation about the intention and reasons for suspension of business activity and tax obligation.
Whereas for permanent deregistration of a business, as specified under SI 138 of 2022, taxpayers must notify the Commissioner General within 28 days from the date of cessation of their business activity about their decision to permanently deregister their operations with SRC. To enable this process, the taxpayer must download, complete and submit the business cessation form available online at www.src.gov.sc via email to email@example.com or by hand delivery at any SRC offices on Mahe, Praslin, and La Digue during working hours.
Failing to commit to the timeline, will result in the taxpayer committing an offence liable on conviction to imprisonment for a term of one year, or to a fine of SCR 50,000 or to both such fine and imprisonment
To note, under the Revenue Administration Act, the Commissioner General has the power to suspend a business activity without receipt of any application from the taxpayer, if the taxpayer becomes unable to continue the business operation due to serious physical or mental disability, has passed away, is declared bankrupt, is missing or is in jail consequent of punishment for imprisonment for an offence.
In the event that the taxpayer decides to resume its business activity and tax obligation, the taxpayer must within 14 days prior to the resumption of its business, notify the Commissioner General in writing of their intention.