According to Section 2 of the Seychelles Income Tax Act, an individual is considered a tax resident if they meet any of the following criteria:
- Physical presence in Seychelles for more than 183 days in a calendar year.
- Domicile in Seychelles, as determined by the Seychelles Citizenship Act.
- Employment in Seychelles for more than 183 days in a calendar year.
- Carrying out a trade or business in Seychelles for more than 183 days in a calendar year.
For companies, tax residency is determined based on the place of incorporation or management and control. A company is considered a tax resident if it is incorporated in Seychelles or if its management and control is exercised in Seychelles.
Impact of International Tax Treaties
Seychelles has entered into several double taxation agreements (DTAs) with other countries. These DTAs may modify or provide exceptions to the standard criteria for tax residency.
Key Provisions in DTAs
- Article 4 of the Seychelles-Mauritius DTA: Defines a resident of Seychelles as an individual who is domiciled in Seychelles or who is present in Seychelles for a period or periods exceeding in the aggregate 183 days in a calendar year.
- Article 4 of the Seychelles-South Africa DTA: Defines a resident of Seychelles as an individual who is ordinarily resident in Seychelles or who is present in Seychelles for a period or periods exceeding in the aggregate 183 days in a calendar year.
- Article 4 of the Seychelles-United Arab Emirates DTA: Defines a resident of Seychelles as an individual who is domiciled in Seychelles or who is present in Seychelles for a period or periods exceeding in the aggregate 183 days in a calendar year.
Rationale for Treaty-Specific Modifications
These treaty-specific modifications aim to prevent double taxation and provide clarity in determining tax residency in cross-border situations. They reflect the mutual agreement between Seychelles and the treaty partner country to facilitate tax compliance and enhance economic cooperation.
If you need any other informational tax guides for other countries, feel free to browse our other articles below:
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