Seychelles corporate tax - guide for international expansion

Are you considering expanding your business to Seychelles? Understanding the corporate tax landscape is crucial for making informed decisions about this Indian Ocean archipelago nation.

Seychelles offers an attractive business environment with competitive tax rates and a strategic location between Africa and Asia. Whether you're exploring new markets, setting up operations, or planning international expansion, grasping the corporate tax obligations will help you navigate this tropical business destination successfully.

If you're looking for efficient ways to manage international payments and banking, Wise Business can help streamline your cross-border transactions and financial operations in Seychelles.

💡 Learn more about Wise Business

This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Seychelles Corporate Tax Rate in 2025

The corporate income tax system in Seychelles is applied on a progressive scale for both resident and non-resident companies on all Seychelles-sourced income. The standard business tax rates are 15% on the first SCR 1,000,000 (Seychelles Rupee) of taxable income, and 25% on any taxable income amount exceeding this SCR 1,000,000 threshold. These rates apply to all companies incorporated in Seychelles and foreign companies conducting business through a permanent establishment within the country.¹

The country’s tax regime includes specific provisions for various sectors. While the two-tier progressive rate applies generally, certain regulated industries, such as banking, insurance, and telecommunications, are subject to a higher top tax rate of 33%.¹

Small businesses (SMEs) with an annual turnover below SCR 1 million benefit from the Presumptive Tax regime, a simplified compliance option. Instead of calculating the progressive Business Tax, qualifying businesses pay a flat rate of 1.5% on their annual turnover, file a simplified one-page return declaring income only (no expenses), and may voluntarily use the 'Pay As You Earn' (PAYE) scheme to make monthly tax remittances.²

Read more about Corporate Tax Planning best practices

How to Pay Corporate Tax in Seychelles

Corporate tax payments in Seychelles are administered by the Seychelles Revenue Commission (SRC), the country's tax authority. Companies must register for tax purposes within 28 days of commencing business operations or incorporating in Seychelles.²

The tax year in Seychelles runs from 1 January to 31 December, and companies are required to file their annual corporate income tax returns by 31 March of the following year.²

Companies are required to make provisional tax payments during the year under the Pay As You Go (PAYG) Installment system, typically in monthly installments. The monthly payment is due on or before the 21st of the following month (in-person) or the 23rd (online/bank transfer). The provisional tax is generally based on an estimate of the current year's liability.³

Late payment penalties apply at a rate of 15% plus daily interest on the outstanding amount until settled. Additionally, failure to file returns on time attracts administrative fines of SCR 1,000–5,000, depending on the delay.⁴

Let's calculate the annual tax due for a company with a turnover of SCR 22.5 million (approximately $1.5 million USD) and a profit margin of 10%:

Taxable profit: SCR 22.5 million × 10% = SCR 2.25 million

Corporate tax due: SCR 2.25 million × 25% = SCR 562,500

When expanding your business to Seychelles, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

Get started with Wise Business 🚀

Tax Compliance in Seychelles

Meeting tax obligations in Seychelles requires proper registration and timely reporting. The main requirements include:

• Registration with the Seychelles Revenue Commission (SRC): mandatory after incorporation to start meeting tax obligations.
• Corporate income tax: onshore companies pay 25%, while International Business Companies (IBCs) benefit from exemptions, making Seychelles one of the jurisdictions with the best corporate tax rates in the world.⁵
• Annual tax returns: must be filed within four months after the end of the financial year.
• Advance payments: often required. Setting up a corporate tax payment plan can help manage cash flow and avoid penalties.
• Value Added Tax (VAT): charged at 15%. Registered businesses must file VAT returns monthly or quarterly, usually by the 21st of the following month.⁵
• Record keeping: companies must maintain accurate records in line with International Financial Reporting Standards (IFRS).⁶
• Penalties: late or incorrect filings may result in fines, daily penalties, or prosecution. The SRC also carries out random audits.⁷

By following these steps and working with tax professionals, businesses can remain compliant and focus on expansion in Seychelles.

International Expansion to Seychelles

The Seychelles has built a reputation as a secure and reliable destination for foreign investment. The island nation is made up of 115 islands in the Indian Ocean⁸ and has built a reputation as a safe and stable investment destination. Its location provides easy access to Africa, the Middle East, Europe, and Asia, making it a strategic hub for international business.⁹

The economy of Seychelles is driven by tourism, fisheries, and financial services. In 2024, GDP per capita reached USD 17,858, one of the highest in Africa. Tourism arrivals exceeded 350,000 visitors, more than three times the country’s population.¹⁰ Beyond tourism, opportunities are growing in ICT, renewable energy, and construction, supported by high internet and mobile penetration rates.

The government has made significant progress in strengthening the economy. Programs backed by the IMF in 2023 and 2024 have supported stability, climate reforms, and fiscal discipline.⁸ Investors also benefit from a transparent legal system, a 96% literacy rate, and an educated workforce.⁹ These factors create a reliable environment for long-term expansion.

The Seychelles corporate tax rate is competitive, and offshore firms that do not operate locally are not subject to taxation on overseas profits. Special concessions are also available in tourism, agriculture, and fisheries under incentive laws. Businesses can benefit from reduced trade tax, exemptions on employment-related taxes, and clear guidelines on how to pay their corporate tax bill.¹¹

To establish a business in Seychelles, you have to:¹²

1. Conduct market research to understand demand and competition.
2. Prepare a solid business plan and submit it to the Seychelles Investment Board (SIB).
3. Register the business or company with the relevant authorities after approval.
4. Apply for the necessary licenses from the Seychelles Licensing Authority (SLA).
5. Obtain a Tax Identification Number (TIN) from the Seychelles Revenue Commission.
6. Open a bank account to begin operations.

Seychelles offers unique advantages for global investors, including skilled human capital and strong international connectivity. Businesses applying for a Seychelles forex license benefit from favorable tax policies, including one of the lowest corporate tax rates at just 1.5%.¹³ These tax benefits, combined with the country’s stable investment climate, make Seychelles an attractive choice for entrepreneurs and corporations expanding into international markets.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Seychelles

To incorporate a business in Seychelles, you’ll need to apply with the Seychelles Registrar of Companies. Most investors choose to work with a corporate tax consultancy or a corporate tax planner to ensure compliance. The key requirements include:¹⁴

• Company name: must be unique and follow official rules. It should include a word or abbreviation that shows limited liability and cannot be too similar to an existing business name.
• Registered agent: required for incorporation. The agent acts as the company’s local representative, submitting documents and handling annual renewals.
• Directors and shareholders: at least one director and one shareholder are required. They can be the same individual or a corporate entity.
• Identification documents: certified true copies of passports, recent utility bills, or bank statements are required for all directors, shareholders, and ultimate beneficial owners (UBOs).
• Certificate of incorporation: issued once the company is registered. Confirms the legal existence of the business.
• Memorandum and articles of association: foundational documents that outline governance rules and internal operations of the company.

Business Entities in Seychelles

Several types of entities can be established under the Companies Act:⁵

• Sole Proprietorship: Owned by one individual, who is personally liable for debts. This is the simplest form of business.
• Limited Liability Company (LLC/IBC): The most popular entity in Seychelles. It has no minimum capital requirement, allows 100% foreign ownership, and is quick to register with the Financial Services Authority (FSA). It is often chosen by those interested in corporate tax reduction strategies because of its favorable tax treatment.
• Public Limited Company (PLC): Suitable for larger businesses. Requires at least two shareholders and a board of directors.
• Partnerships: Can be general (all partners share full liability) or limited (some partners have limited liability).
• Branch of a Foreign Company: Enables foreign firms to operate locally while remaining part of the parent company. Must be registered with the FSA.
• Offshore Companies: Common in Seychelles for asset protection and tax benefits, as they are exempt from local taxation on overseas profits.

Seychelles maintains a competitive marginal corporate tax rate, which adds to its appeal for international entrepreneurs. Combining business-friendly laws with efficient registration, the jurisdiction is a strong option for companies planning expansion.

International Corporate Tax Best Practices

Managing corporate tax obligations across multiple jurisdictions requires strategic planning and compliance with both local and international standards. Here are key best practices for international businesses operating in Seychelles and other countries.

Stay compliant with local and international tax laws by ensuring proper registration in every jurisdiction where your business operates. File all required tax returns on time to avoid penalties, and maintain up-to-date knowledge of local tax regulations. Understanding OECD frameworks such as Base Erosion and Profit Shifting (BEPS) guidelines helps ensure transparency and prevents tax avoidance issues.

Leverage double taxation treaties (DTTs) to avoid being taxed twice on the same income. Seychelles has signed double taxation agreements with several countries, including South Africa, Mauritius, and the UAE, which can provide significant tax relief for qualifying businesses.

Maintain comprehensive and transparent financial records to support accurate tax return preparation and reduce the risk of errors that could lead to penalties. Well-organised financial documentation also simplifies the audit process and demonstrates good corporate governance to tax authorities.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Seychelles efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

Get started with Wise Business 🚀

FAQs - Corporate Tax in Seychelles

Who is liable for corporate tax in Seychelles?

Companies incorporated in Seychelles are considered resident for tax purposes and are liable for corporate income tax on their Seychelles-sourced income. Non-resident companies are subject to corporate tax only on income derived from sources within Seychelles, typically through a permanent establishment or specific types of Seychelles-sourced income.

Are there any tax incentives for businesses in Seychelles?

Yes, Seychelles offers various tax incentives for specific sectors and activities. The Small Business Incentive Act provides benefits for qualifying small businesses, while the Tourism Incentive Act offers incentives for tourism-related investments. Manufacturing companies may qualify for reduced tax rates under certain conditions, and businesses in designated special economic zones may benefit from preferential tax treatment.

What is the tax treatment of dividends in Seychelles?

Dividends paid by Seychelles resident companies to shareholders are generally subject to withholding tax at a rate of 15%. However, this rate may be reduced under applicable double taxation treaties. Dividends received by Seychelles companies from foreign sources are generally not subject to tax in Seychelles due to the territorial tax system.

What is the process for registering for corporate tax in Seychelles?

Companies must register with the Seychelles Revenue Commission within 30 days of incorporation or commencing business activities. The registration process involves submitting Form IT1 along with supporting documents including the certificate of incorporation, memorandum and articles of association, and details of directors and shareholders. Once registered, companies receive a tax identification number (TIN) which must be used for all tax-related correspondence.

What are the common pitfalls to avoid regarding corporate tax in Seychelles?

Common mistakes include failing to register for tax within the required 28-day period, not maintaining proper accounting records in accordance with International Financial Reporting Standards (IFRS), missing provisional tax payment deadlines, and incorrectly determining the source of income under the territorial tax system. Additionally, businesses should ensure they understand the specific requirements for their industry, as certain sectors have additional compliance obligations or qualify for special incentive schemes.

Sources used in this article:

1. UNCTAD: Amends Business Tax Rates
2. Seychelles Revenue Commission (SRC): Seychelles Tax System
3. Company Formation Seychelles: Corporate Tax Rate
4. Remote People: Seychelles Payroll Tax
5. Lawgratis: Business Law in Seychelles
6. Generis Online: Overview of the Tax System
7. Seychelles Nation: Filing the VAT Return
8. U.S. Department of State: 2024 Investment Climate Statements - Seychelles
9. Lloyds Bank Trade: Investing in Seychelles
10. Invest in Seychelles: Official Website
11. Seychelles Consulate: Business and Investment Information
12. Invest in Seychelles: Start Your Business Guide
13. Global Law Experts: Forex Licence in Seychelles
14. Astra Trust: Complete Guide to Company Formation

Sources last checked 30/09/2025