Tourism (Incentives) Act
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CONSOLIDATED TO 30 JUNE 2012
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LAWS OF SEYCHELLES
TOURISM (INCENTIVES) ACT
[28th December 2003]
ARRANGEMENT OF SECTIONS
1. Short title
2. Interpretation
3. Application of this Act
4. Incentives for licensed accommodation
5. Tour operators’ concessions
6. Concessions for other tourism services
7. Fuel concessions
8. Certificate of entitlement
9. Restrictions, penalties etc
10. Marking of logo etc, on vehicles and necessary means of transport
11. Offences and penalties
12. Revocation or suspension of certificate of entitlement
13. Regulations
Schedules 1 – 20
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1. This Act may be cited as the Tourism (Incentives) Act.
2. In this Act —
“capital equipment” means tangible things, not being construction materials, which would normally be treated as assets on the balance sheet of a business and, each of which has a C.I.F. value of R1,000 or more and a useful life expectancy of 2 years or more and includes fabricated equipment that has an aggregate C.I.F. value of R1000/- or more and a useful life expectancy of 2 years or more, grouped purchases of minor operating equipment forming part of the construction or major renovation phase of a licensed accommodation as approved by the Ministry and necessary means of transport but does not include replacement or maintenance parts or components of such things;
“casino operator” means a person carrying on the business of gambling games or games of chance and licensed in accordance with the licensing laws of Seychelles;
“chauffeur-driven motor vehicle” means a vehicle having the capacity to carry nine passengers or less, including the driver, with an engine cylinder capacity of not less than 2000cc, and which is provided for the use of guests together with a driver;
“C.I.F.” means the value of bringing goods to Seychelles and includes the cost of the goods, insurance and overseas freight;
“commercial vehicle” means any motor vehicle not exceeding 1 ton capacity designed for the transportation of goods and includes pick-up trucks and dual or twin cab trucks or any car of a maximum cylinder capacity of 1800cc (petrol) or 2500cc (diesel);
“Competent Authority” means the person appointed as such by the Minister by Order published in the Gazette;
“construction materials” includes all materials used during the construction or major renovation phase of a licensed accommodation which has been approved by the Ministry;
“consumables” means any item used in a licensed accommodation and in an island hotel resort and listed in Part 3 of Schedules 1 and 2;
“equestrian tourism operator” means a person carrying out the business of providing any horse-related activity, including participatory activities where the visitor does the work of riding or driving the horses, and includes spectator activities where the spectator
observes others who are participating in such horse-related activities;
“G.O.P” means the gainful occupation permit issued under the Immigration Decree;
“G.S.T” means the goods and services tax imposed under the Goods and Services Tax Act;
“G.S.T at concessionary taxable value” means the G.S.T calculated as a percentage of the aggregate of the C.I.F. value, the concessionary trade tax and 0% mark- up of the goods;
“helicopter service operator” means a person carrying on the business of providing commercial helicopter flights services on a scheduled basis or otherwise;
“island hotel resort” means all categories of licensed accommodation situated on islands other than Mahe, Praslin, La Digue, Cerf, Moyenne, Long, L’Islette, Anonyme, Round (Mahe), Round (Praslin), Ste Anne, Ile Therese, and Ile Hodoul;
“licensed accommodation” means a small or large hotel and self-catering establishment or a luxury villa licensed under the Licences (Accommodation, Catering and Entertainment Establishments) Regulations made under the Licences Act;
“Minister” means the Minister responsible for finance;
“Ministry” means the Ministry of the Minister;
“minor operating equipment” means articles and mate-rials used in a licensed accommodation of a C.I.F. value of less than R1000 per unit or a useful life expectancy of less than 2 years but does not include consumables;
“motor vehicle” means a vehicle propelled by any form of mechanical power, for conveying goods or persons in connection with a trade or business. In the case of a passenger motor vehicle, it shall not exceed a maximum cylinder capacity of 2500cc (petrol) and 2500cc(diesel), including a pick-up truck not exceeding 1.5 tons and a dual or twin cab truck;
“necessary means of transport” means any aircraft or watercraft used solely for the transportation of goods, clients or staff of the licensed accommodation or restaurant to and from the licensed accommodation or restaurant if a regular service is not available;
“officer” means the Revenue Commissioner, a person authorised as such under the Trades Tax Act, Business Tax Act, Goods and Services Tax Act and Social Security Act, and any other person authorised as such by the Minister to administer this Act;
“operational vehicle” means any motor vehicle of a maximum cylinder capacity of 1300cc used by the staff of the business in connection with their duties;
“passenger cruise ship operator” means a person carrying on the business of providing a passenger cruise ship services and who is licensed to cruise in Seychelles territorial waters, and principally designed to accommodate a minimum of twenty passengers on a live-aboard basis;
“passenger ferry service operator” means a person carrying on the business of a licensed scheduled passenger ferry service as approved by the Port Authority;
“restaurant” includes cafeteria;
“standard equipment” means such equipment neces-sary and used in the activities conducted by the
licensee as are approved by the Competent Authority and in the case of a dive centre and dive operator includes masks, snorkel, fins, weight belt, regulator with submersible pressure gauge, buoyancy compensator device, time and depth measuring device, inflatable surface balloon, knife and emergency signaling device, ALU tank, dive lamp, wet suit, radio, first-aid kit, oxygen kit and dive computer;
“temporary cruise ship operator” means a person carrying on the business of providing passenger cruise ship services and who is licensed to cruise in Seychelles territorial waters for a period not exceeding six months in any twelve-month period;
“temporary yacht/live-aboard operator” means a person carrying on the business of providing commercial charter in Seychelles territorial waters for a period not exceeding three months in a twelve month period;
“tour operator” means a person carrying on the business of planning, scheduling or organising tours, which may include arrangements for accommodation, sightseeing or other similar services by any mode of transport.
3. Notwithstanding anything to the contrary, in the Trades Tax Act, the Goods and Services Tax Act, the Immigration Decree and the Social Security Act or regulations made thereunder, licence holder in the tourism industry shall be granted incentives in accordance with the provisions of this Act.
4.(1) Every licensed accommodation shall —
(a) be entitled to Trades Tax and G.S.T. concessions on imports specified in Part I of Schedule 1 and 2 during the period specified therein;
(b) pay Social Security contributions under the Social Security Act and obtain the Gainful Occupation Permit under the Immigration Decree subject to the provisions of Part 2 of Schedule 1 and 2 during the period specified in Schedule 20;
(c) where applicable, be entitled to operate a souvenir shop within the premises of the licensed accommodation to sell souvenirs subject to such conditions as may be attached to the licence;
(d) be permitted to provide facilities for non- motorised water sports.
(2) For the purpose of subsection (1), “licensed accommodation” includes a live-aboard consisting of at least 20 guest cabins.
5. Every licensed tour operator shall be entitled to the concessions specified in Parts 1 & 2 of Schedule 6 during the period specified in Schedule 20.
6. Every licensed restaurant, not being a restaurant operated within a licensed accommodation, and every licensed dive centre or dive operator, hire craft operator, car hire and taxi operator, yacht and live-aboard operator (temporary and permanent), tour operator and tour guide, non-motorized water sports operator, motorized water sports operator, passenger cruise ship operator (temporary and permanent), passenger ferry service operator, equestrian tourism operator, casino operator and helicopter services operator shall be entitled to the concessions specified in Schedules 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18 and Parts 1 to 2 of Schedule 19 where applicable during the period specified in Schedule 20.
7. Every licensed accommodation, island hotel resort, hire craft operator, necessary means of sea transportation, dive centre operator, dive operator, tour operator (for licensed motor boats), temporary cruise ship operator, permanent cruise ship operator, yacht and live-aboard operator (temporary and permanent) and helicopter services operator who meets the criteria specified in Schedule 13 and 14, shall be entitled to the fuel concessions specified herein.
8.(1) Any person claiming any concession under this Act shall apply in the prescribed form to the Competent Authority for the grant of a certificate of entitlement.
(2) The Competent Authority may require the applicant to furnish any additional information relevant to the application for the purpose of dealing with the application.
(3) It shall be a condition of the grant of any concession under this Act that the applicant —
(a) Complies with the requirements of any other law relating to the subject-matter of the concession: and
(b) Produces a certificate of entitlement issued under subsection (1) when required to do so.
9. No vehicle, aircraft, watercraft, necessary means of transport, or goods imported into Seychelles in respect of which any concession has been granted under this Act shall be sold, exchanged, rented, given away or exported from Seychelles or applied to any purpose other than that for which they were imported except —
(a) in the case of a transfer of the licensee’s business for which it was so imported as a going concern to another person;
(b) after the lapse of 2 years from the date of importation, upon the licensee paying or giving security to the satisfaction of the Comptroller of Trades Tax Imports or the Commissioner of Taxes, as the case may be, for the payment of an amount equivalent to the amount of Trades Tax or G.S.T as the case may be, which would have been payable on it but for this Act;
(c) in the case of a pledge upon the licensee giving security to the satisfaction of the Comptroller of Trades Tax Imports or the Commissioner of Taxes, as the case may be, for the payment of an amount equivalent to the amount of Trades Tax or G.S.T. as the case may be which would have been payable on it but for this Act in the event of a forfeiture of the vehicle, aircraft, watercraft, necessary means of transport or goods pledged;
and with the prior written approval of the Competent Authority which may be given subject to such conditions as may be specified.
10. Every vehicle and necessary means of transport in respect of which any concession has been granted under this Act shall be registered in the name of the business and shall have the logo or name of the business clearly visibly marked on the vehicles or necessary means of transport.
11.(1) The Competent Authority may require any person holding a certificate of entitlement to keep such records in such manner as may be directed by the Competent Authority and to take such other measures as may be necessary to ensure that this section is complied with and the person shall comply with that requirement.
(2) A person who contravenes the provisions of subsection (1) is guilty of an offence and liable on conviction to a fine of not less than R20,000 and not more than R50,000.
(3) An officer may —
(a) enter and search any licensed accommodation or any premises used by the holder of the certificate of entitlement for purposes of conducting the business;
(b) examine goods which are the subject-matter of any certificate of entitlement;
(c) require the holder of the certificate of entitlement or any person who has control or custody of, or access to, any record kept pursuant to subsection (1) to produce such record for inspection;
(d) examine and take extracts from and make copies of any record kept pursuant to subsection (1).
(4) Any person who —
(a) obstructs an officer in the exercise of the officer’s functions under this Act; or
(b) fails or refuses to produce or give access to any record kept pursuant to subsection (1) when required to do so by an officer under subsection (3)(c),
is guilty of an offence and on conviction liable to a fine of not less than R20,000 and not more than R50,000.
(5) Where a person who has contravened subsection (1) or (4) admits to the contravention and agrees in writing to the contravention being dealt with under this subsection, the Competent Authority may compound the offence by accepting a sum of money not less than R10,000 and not exceeding the maximum fine specified for the offence under subsections (2) and (4), as the case may be.
(6) The holder of a certificate of entitlement in respect of which any vehicle, necessary means of transport, or goods have been imported with the benefit of a concession under this Act, who contravenes any provisions of section 9 is guilty of an offence and liable on conviction to a fine of an amount not exceeding three times the C.I.F. value of the vehicle, necessary means of transport, or goods relating to which he contravenes such provision.
(7) Where a person who has contravened any pro-vision of section 9 admits to the contravention and agrees in writing to the contravention being dealt with under this subsection, the Competent Authority may compound the offence by accepting the sum of money not less than twice the C.I.F. value of the vehicle, necessary means of transport, or goods relating to which he contravenes such provision and not exceeding the maximum fine specified for the offence in subsection (6).
(8) A sum of money received under subsection (5) or (7) shall be dealt with as if it were a fine imposed by a court.
(9) In any proceedings brought against a person for an offence under subsection (2), (4) or (6), it shall be a good defence if the person proves that ?
(a) the offence has been compounded under this section; and
(b) the person has paid the sum of money referred to in subsection (5) or (7).
12.(1) The Competent Authority may, where he is satisfied that the certificate of entitlement has been granted on the basis of information or material which, to the knowledge of the holder of the certificate of entitlement, was false or misleading or that the holder of the certificate of entitlement has breached any condition of the certificate or has otherwise become disqualified for the grant of the certificate or has contravened any provisions of this Act, revoke or suspend the certificate in whole or in part for a period of not less than 12 months.
(2) Where the Competent Authority revokes or suspends a certificate of entitlement under subsection (1), the Competent Authority shall forthwith notify the holder of the certificate of the revocation or suspension as the case may be.
(3) Where a certificate of entitlement is revoked or suspended under subsection (1) the holder of the certificate of entitlement shall cease to be entitled to the concessions and incentives in relation to that certificate.
(4) Subject to subsection (1), where the holder of a certificate of entitlement is aggrieved by a revocation or suspension of the certificate, he may within 15 days of receiving the notification of revocation or suspension apply for a review of the decision by the Supreme Court.
(5) The Supreme Court may on such application affirm or quash the decision of the Competent Authority.
(6) Where on an application under subsection (5) the Supreme Court, or on an appeal the Court of Appeal, quashes the decision of the Competent Authority, the certificate of entitlement shall be deemed not to have been revoked or suspended.
13. The Minister may make regulations for carrying into effect the provisions of this Act and for any matter necessary or required to be prescribed or for the amendment of any Schedule.
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* SCHEDULE 1
PART 1
Licensed Accommodation
Trades Tax and GST Concessions
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Construction Materials and capital equipment
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Minor Operating Equipment |
Consumables
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Minor Vehicles |
Buses for staff transportation |
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0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary Taxable value |
0% Trades Tax
GST at concessionary taxable value |
1 vehicle for every 10 rooms or part thereof up to 30 rooms and 1 additional for every 20 rooms there-after, at 25% Trades Tax rate or 25% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
1 bus for every 25 rooms or part thereof, all at applicable rate of Trades Tax |
1Golf carts for use of transportation of clients will be treated as Capital Equipment,
PART 2
Social Security Contributions and G.O.P Concessions
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Social Security Contribution |
G.O.P fees and expatriate quota |
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Employer’sEmployee’s ContributionContribution
Non-Seychellois 0% Applicable Rate
Seychellois Applicable Rate 50% Applicable Rate |
Maximum Allowable Foreign Workers
First 1 to 50 workers 30% Next 51 to 200 workers 60% Excess of 200' 80%
GOP fees at 35% of the specified rates as stated in the Immigration Regulations per person per month |
In the case of a non-Seychellois employee, where the Employer’s Contribution specified above is 0% of the rates in the Social Security Act of 1987, the employer shall take out an acceptable policy of health insurance in respect of each employee.
In the event that sufficient qualified Seychellois workers are not available an increase above the 80% foreign worker, limit may be considered for the establishment at the same rate of GOP.
In the event that the licensee’s retention is in excess of 25% GOP fee shall be payable in a convertible foreign currency equivalent to the rupee amount stipulated in the Immigration Regulations.
PART 3
Hotel Consumables and Guest Consumables
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Hotel Consumables |
Guest Consumables |
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Minibar • Bottle/ wine operator • Stirrer
Food and Beverage • Disposable chopsticks skewers • Kitchen supplies such as paper napkins, cling films, aluminum foil, gloves etc. • Toothpicks • Sterno and similar • Charcoal • Disposable chef hats • Disposable bar supplies Office Supplies • Stationery • Computer supplies • Photocopier supplies • Fax machine supplies Housekeeping • Satin padded or wooden hangers • Fax machine supplies • Cotton laundry bags • Flags • Iron Starch • Detergent • Fabric Softener • Dry cleaning solvent • Insect/Pest repellent • Other cleaning supplies Guestroom • Stationery • Umbrella • Insect repellent/Mosquito net • Ice bucket with lid • Disposable laundry bags • Tumblers
Engineering Consumables • Lubricants • Refrigerants • Gardening supplies • Electrical fittings • Glues (for wood, PVC etc.)
General • Staff uniforms • Balloons and other decorations • Candles • First Aid Kit
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Bathroom Amenities Soap: 35g and 60g Bath foam\\ Shampoo/Conditioner Body lotion Cotton pads Shower gel Sanitary bags Dental kit Emery board Make-up removal pads Cotton buds Sun tanning lotion Eau de Toilette Shower cap Refreshing towels Box of tissues Rolls of toilet paper Sanitary disposable bags Pair of slippers Bath vase Mouthwash Toothbrush kit Disposable razors/shaving cream Matches Emergency sewing kit Shoehorn Shopping bags/Beach bags Shoe polish wipes Beauty products for exclusive salon
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SCHEDULE 2
PART 1
Island Resort Hotels
Trades Tax and GST Concessions
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Construction materials and capital equipment |
Minor Operating Equipment |
Consumables |
Motor Vehicles
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Hotel/Guests
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0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary Taxable value |
0% Trades Tax
GST at concessionary taxable value |
Maximum of 3 vehicles out of which not more than one vehicle can be based on Mahe
Trades Tax on the vehicles will be at 25% or 25% of the applicable rate of Trades Tax whichever is higher
GST at concessionary taxable value
Pick-up trucks exceeding 3 tons will be prohibited for use on Mahe |
2Gulf carts for use of transportation of clients will be treated as capital equipment.
Refrigerated and insulated trucks HS 8704,4000 will be treated as capital equipment
PART 2
Social Security Contributions and G.O.P Concessions
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Social Security Contribution |
G.O.P fees and expatriate quota |
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Employer’sEmployer’s ContributionContribution Non-Seychellois 0% Applicable Rate
Seychellois Applicable 50% Applicable Rate Rate
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Maximum Allowable Foreign Workers:
First 1 to 50 workers 50% Next 51 to 200 workers 70% Excess of 200* 90% 35% of the specified rates as stated in the Immigration Regulations per person per month |
In the case of a non-Seychellois employee, where the Employer’s Contribution specified above is 0% of the rates in the Social Security Act of 1987, the employer shall take out an acceptable policy of health insurance in respect of each employee.
* In the event that sufficient qualified Seychellois workers are not available an increase above the 80% foreign worker, limit may be considered for the establishment at the same rate of GOP.
* In the event that the licensee’s retention is in excess of 25% GOP fee shall be payable in a convertible foreign currency equivalent to the rupee amount stipulated in the Immigration Regulations.
PART 3
Hotel Consumables and Guest Consumables
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Hotel Consumables |
Guest Consumables |
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Minibar • Bottle/ wine operator • Stirrer
Food and Beverage • Disposable chopsticks skewers • Kitchen supplies such as paper napkins, cling films, aluminum foil, gloves etc. • Toothpicks • Sterno and similar • Charcoal • Disposable chef hats • Disposable bar supplies Office Supplies • Stationery • Computer supplies • Photocopier supplies • Fax machine supplies
Housekeeping • Satin padded or wooden hangers • Fax machine supplies • Cotton laundry bags • Flags • Iron Starch • Detergent • Fabric Softener • Dry cleaning solvent • Insect/Pest repellent • Other cleaning supplies
Guestroom • Stationery • Umbrella • Insect repellent/Mosquito net • Ice bucket with lid • Disposable laundry bags • Tumblers
Engineering Consumables • Lubricants • Refrigerants • Gardening supplies • Electrical fittings • Glues (for wood, PVC etc.)
General • Staff uniforms • Balloons and other decorations • Candles • First Aid Kit
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Bathroom Amenities Soap: 35g and 60g Bath foam\\ Shampoo/Conditioner Body lotion Cotton pads Shower gel Sanitary bags Dental kit Emery board Make-up removal pads Cotton buds Sun tanning lotion Eau de Toilette Shower cap Refreshing towels Box of tissues Rolls of toilet paper Sanitary disposable bags Pair of slippers Bath vase Mouthwash Toothbrush kit Disposable razors/shaving cream Matches Emergency sewing kit Shoehorn Shopping bags/Beach bags Shoe polish wipes Beauty products for exclusive salon
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SCHEDULE 3
PART 1
Restaurant outside Licensed Accommodation
*Trades Tax and GST Concessions
|
Construction³ materials and capital equipment |
Minor Operating Equipment |
Motor Vehicles
|
Boat and Boat Engine
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0% Trades Tax
0% GST
|
0% Trades Tax
GST at Concessionary Taxable value |
1 vehicle at 25% Trades Tax rate or 5% of applicable Trades Tax, which-ever is higher
GST at concessionary taxable value |
0% Trades Tax 0% GST for 1 boat |
3 Construction materials includes all materials used during the construction or major renovation phase of the stand alone restaurants which has been approved by the Ministry.
4 Applies only to restaurants (stand alone) which are not accessible by roads or have any public ferry service operating in that location.
PART 2
Social Security, G.O.P Concessions
|
Social Security Contribution |
G.O.P. fees and expatriate quota |
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Employer’sEmployer’s ContributionContribution
Non-Seychellois 0% Applicable Rate
Seychellois Applicable 50% Applicable Rate Rate
|
M.A.F.W=2 persons or 30% (which-ever the higher)
35% of the specified rates as stated in the Immigration Regulations per person per month |
In the case of a non-Seychellois employee, where the Employer’s Contribution specified above is 0% of the rates in the Social Security Act, the employer shall take out an acceptable policy of health insurance in respect of each employee.
*In the event that the licensee’s retention is in excess of 25%, GOP fee shall be payable in a convertible foreign currency equivalent to the rupee amount stipulated in the Immigration Regulations.
SCHEDULE 4
PART 1
Casino Operator
Trades Tax and GST Concessions
|
Capital Equipment |
Minor Operating Equipment |
Motor Vehicles |
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0% Trades Tax
0% GST
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0% Trades Tax
GST at concessionary taxable value
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1 vehicle at 25% Trades Tax rate on 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value
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PART 2
Social Security, G.O.P. Concessions
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Social Security Contributions |
G.O.P fees and expatriate quota |
|
Employer’sEmployee’s Contribution
Non-Seychellois 0% Applicable Rate
Seychellois Applicable 50% Applicable Rate Rate
|
M.A.F.W=5 persons or 30% (which- ever is higher)*
35% of the specified rates as stated in the GOP Regulations per person per month |
*In the event that sufficient Seychellois workers are not available an increase above 30% foreign worker limit may be considered for the establishment at the same rate of GOP.
In the case of a non-Seychellois employee, where the Employer’s Contribution specified above is 0% of the rates in the Social Security Act, the employer shall take out an acceptable policy of health insurance in respect of each employee.
In the event that the licensee’s retention is in excess of 25%, G.O.P. fee shall be payable in a convertible foreign currency equivalent to the rupee amount stipulated in the Immigration Regulations.
SCHEDULE 5
Main Contractors and Subcontractors during
Construction Phase Major Renovation/Extension on any
approved Tourism Hotel Project of SR25 million or greater
PART 1
Main Contractors
(i) Capital Equipment
0% Trades Tax, 0% GST
(ii) Royalties
Royalties paid to a non-resident shall be exempt from withholding tax.
(iii) *GST
GST on professional service fees received by the following persons architect, engineer and quantity surveyor carrying on businesses in Seychelles, that would otherwise be liable to the payment of GST, shall be exempt from GST.
(iv) Social Security: Employer’s Contribution Employer’s
Contribution
Non Seychellois 0% provided that an accep- Applicable Rate
Table health insurance
Policy is taken for all
expatriate employees
Seychellois 90%ApplicableRate Applicable Rate
GOP allowance and fees
60% non-Seychellois at GOP fee at 35% of the specified rates as stated in the Immigration Regulations per person per month
* In the event that the licensee’s retention is in excess of 25%, GOP shall be payable in a convertible foreign currency equivalent to the rupee amount stipulated in the Immigration Regulations
(vi) Fuel (diesel only)
Trades Tax exemption on fuel used by plant and equipment on construction site, the amount used to be endorsed by the designated project manager.
(vii) Motor vehicles
Contractors shall be granted concessions on 3 com-mercial vehicles not exceeding 3 tons. This should not include passenger type vehicles other than twin cabs at 25%, or 50% of the applicable trades tax rate whichever is higher.
For the purpose of this Act overseas companies must register with the Registrar in order to benefit from the concession under this Act.
PART 2
Subcontractors
Concessions to be granted only for the following activities:
(a) Electrical
(b) Plumbing
(c) Pest Control
(d) Air Conditioning and Refrigeration
(e) Blasters
(1) Trades and GST
Trades Tax and GST exemption on:
Tools and equipment to be used on the construction site (Bill of entry has to be endorsed by the designated project manager/main contractor)
(2) Social Security Contributions
(a) For Seychellois employees:
(i) Employer’s Social Security contribution:
capped at 50% of applicable rate
(ii) Employer’s Social Security contribution at applicable rate
(b) For non-Seychellois employees:
(i) Employer’s Social Security Contribution at 0% provided that an acceptable health insurance policy is taken for all expatriate employees
(ii) Employee’s Social Security contribution at applicable rate
(3) GOP
*60% non-Seychellois at GOP fee at 35% of the specified rates as stated in the Immigration Regulation per person per month. This shall be applicable to Electrical, Plumbing, Air Conditioning and refrigeration sub-contractors.
For the purpose of this Act overseas companies meet register with the Registrar in order to benefit from the concession under this Act.
SCHEDULE 6
Tour Operators and Tour Guide
PART 1
Trades Tax and GST Concessions
|
Tourism Operators |
Items |
Trades Tax and GST |
Number of Vehicles |
|
|
Operational Vehicles up to 1300cc |
25% , Trades Tax or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
One vehicle for every 1000 foreign customers handled or part thereof on an annual basis up to 10,000 and thereafter (1) one vehicle per every 5000 additional foreign customers handled or part thereof on an annual basis |
|
Passenger vehicles for transportation of clients |
25% Trades Tax or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
(1) One vehicle for every 1000 foreign customers handled or part thereof on an annual basis up to 10,000 and thereafter (1) one vehicle per every 5000 additional foreign customer handled or part thereof on an annual basis |
|
Tourism Operators |
Items |
Trades Tax and GST |
Number of Vehicles |
|
|
Buses (designed to carry up to 10 passengers or more including driver) |
25% Trades Tax or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
(1) One bus for the first 1000 foreign customers handled or part thereof on an annual basis up to 10,000 and thereafter (1) one bus per every 5000 foreign customers handled or part thereof on an annual basis |
|
|
Capital Equipment Relating to Core client operations |
0% Trades Tax GST at concessionary taxable rate |
N/A |
|
Tour Guide |
Buses (designed to carry up to 15 passengers including driver) |
50% of applicable rate of Trades Tax
GST at concessionary taxable value |
N/A |
PART 2
Social Security, G.O.P Concessions – Tour Operator
|
Employer’s Social Security Contributions
|
G.O.P fees and expatriate quota |
|
Employer’sEmployer’s ContributionContribution
Non-Seychellois 0% Applicable Rate
Seychellois
50% of applicable rate Applicable Rate
|
1. MAFW=2 persons or 5% (which-ever is higher at 35% of the specified rates as stated in the Immigration Regulations per person per month
2. One overseas designated representative per major overseas tour operator shall be allowed at applicable rate |
In the case of a non-Seychellois employee, where the Employer’s Contribution specified above is 0% of the rates in the Social Security Act, the employer shall take out an acceptable policy of health insurance in respect of each employee.
*In the event that the licensee’s retention is in excess of 25%, GOP fee is payable in a convertible foreign currency equivalent to the rupee amount specified in the Immigration Regulations.
SCHEDULE 7
Operator of Water Sport Related Activities
PART 1
Trades Tax and GST Concessions
|
|
Capital Equipment |
Minor Operating Equipment |
Motor Vehicles |
Boat and Boat Engine |
|
Dive Center/Dive Operator
|
0% Trades Tax
GST at concessionary taxable value |
0% Trades Tax GST at concessionary taxable value |
1 vehicle at 25% Trades Tax rate or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
0% Trades Tax up to 3
|
|
Hirecraft Operator
|
0% Trades Tax
GST at oncessionary taxable value |
0% Trades Tax
GST at concessionary taxable value |
1 vehicle for business holding 3 boats in their fleet, at 25% Trades Tax rate or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
0% Trades Tax |
|
Non Motorised Water sports operator
|
0% Trades Tax
GST at concessionary taxable value |
0% Trades Tax
GST at concessionary taxable value |
N/A |
0% Trades Tax 1 boat* |
5 In the event that boat for hire “taxi boats” comes into operation, they shall be licensed under the Hirecraft category and shall be granted similar concession as Hirecraft operators.
6 Includes 1 rescue boat for Non-Motorised water sports operator.
|
|
Capital Equipment |
Minor Operating Equipment |
Motor Vehicles |
Boat and Boat Engine |
|
Motorised Water Sports Operator |
0% Trades Tax GST at oncessionary taxable value |
0% Trades Tax |
N/A |
0% Trades Tax
0% GST for 1 boat |
|
Yacht/ Live-aboard* Operator (permanent) |
0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary taxable value |
1 vehicle per license for every 10 yachts/ live-aboards up to a maximum of 3 vehicles at 25% trades tax rate or 50% of applicable rate of Trades Tax, whichever is higher.
GST at concessionary taxable value |
0% Trades Tax
|
|
*Temporary
|
0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary taxable value |
N/A
N/A |
0% Trades Tax
0% GST
|
7 Investment in Yacht Marina includes pontoon and construction materials.
8 The operator is not allowed to advertise locally or solicit clients from within Seychelles.
PART 2
Social Security, G.O.P. Concessions
|
|
Social Security Contribution
|
G.O.P.fees and repatriate quota |
|
Dive centre/ Dive Operator |
Employer’sEmployee’s ContributionsContribution |
M.A.F.W=two technical persons above the qualification |
|
|
Non-Seychellois 0% Applicable Rate Seychelles
50% of applicable rate Applicable |
of Dive Master at 35% of the specified rates as stated in the GOP regulation per person per month |
|
Hirecraft Operator |
Employer’sEmployee’s ContributionContribution
Non-Seychellois 0% Applicable Rate Seychellois
50% of applicable rate Applicable Rate |
M.A.F.W=one technical person per licence at 35% of the specified rates as stated in the GOP regulation per person per month |
|
Yacht/ Live-aboard Operator (permanent) |
Employer’sEmployee’s ContributionContribution
Non-Seychellois 0% Applicable Rate Seychellois
50% of applicable Applicable Rate Rate
Non-Seychellois 0% Applicable Rate Seychellois
50% of applicable Applicable RateRate
|
M.A.F.W=30% of the total workforce* GOP fees at 35% of the specified rates as stated in the GOP regulation per person per month
M.A.F.W= 1 shore based personnel GOP fees at 35% of the specified rates as stated in the GOP regulation per person per month |
In the case of a non-Seychellois employee, where Employer’s Contribution specified above is 0% of the rates in the Social Security Act of 1987, the employer shall take out an acceptable policy of health insurance in respect of each employee.
* In the event that sufficient qualified Seychellois workers are not available an increase above the 30% foreign worker limit may be considered for the Yacht and Live-aboard operator at the same rate of GOP.
In the event that the licensee’s retention is in excess of 25%, GOP fee is payable in a convertible foreign currency equivalent to the rupee amount stipulated.
SCHEDULE 8
Operator of Tourism Leisure Related Activities
PART 1
Trades Tax and GST Concessions
|
|
Capital Equipment |
Minor operating Equipment |
Motor Vehicles |
Boat and Boat Engine |
|
Passenger Cruise Ship
permanent
temporary
Passenger Ferry Service Operator |
0% Trades Tax
0% GST
0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary taxable value
GST at concessionary taxable value
0% Trades Tax
GST at concessionary taxable value
|
1 vehicle per license at 25% Trades Tax rate or 50% of applicable rate of Trades Tax , whichever is higher GST at concessionary taxable value
1 vehicle per license at 25% Trades Tax rate or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value
|
Tax 0% GST
0% Trades Tax
0% Trades Tax
0% GST |
PART 2
Social Security, G.O.P Concessions
|
Service Provider |
Social Security Contribution |
G.O.P fees and expatriate quota |
|
Passenger Ferry Service Operator |
Seychellois
50% of applicable Applicable rate Rate
|
M.A.F.W = technical persons
GOP fees at 35% of the specified rates as stated in the GOP regulation per person per month
|
|
Passenger Cruise Ship Permanent |
Seychellois
50% of applicable Applicable rate Rate |
M.A.F.W = 25%
GOP fees at *25% of the specified rates as stated in the GOP regulation per person |
* In the event that the licensee’s retention is in excess of 25%, GOP fee is payable in a convertible foreign currency equivalent to the rupee amount stipulated.
SCHEDULE 9
Helicopter Services Operator
PART 1
Trades Tax and GST Concessions
|
Capital Equipment |
Minor Operating Equipment
|
Motor Vehicles
|
|
0% Trades Tax
0% GST
|
0% Trades Tax
concessionary taxable value |
Maximum 3 vehicles at 25% Trades Tax rate or 50% of applicable rate of Trades Tax, whichever is higher.
GST at concessionary taxable value
|
PART 2
Social Security, G.O.P Concessions – Helicopter Services
|
Social Security Contributions |
G.O.P fees and expatriate quota |
|
Employer’s ContributionEmployee’s Contribution
Seychellois
50% of applicable Applicable rate Rate
|
M.A.F.W. = 3 technical persons per Helicopter
(GOP fees at 35% of the specified rates as stated in the GOP Regulations per person per month |
* In the case of a non-Seychellois employee, where Employer’s Contribution specified above is 0% of the rates in the Social Security Act, the employer shall take out an acceptable policy of health insurance in respect of each employee.
* In the event that the licensee’s retention is in excess of 25%, GOP fee is payable in a convertible foreign currency equivalent to the rupee amount stipulated.
SCHEDULE 10
Equestrian Tourism Operator
PART 1
Trades Tax and GST Concessions
|
Capital Equipment |
Minor Operating Equipment
|
Motor Vehicles
|
|
0% Trades Tax
0% GST
|
0% Trades Tax
GST at Concessionary taxable value
|
1 commercial vehicle at 25% Trades Tax rate or 50% of applicable rate of Trades Tax, whichever is higher.
GST at concessionary taxable value |
PART 2
Social Security, G.O.P. Concessions
|
Employer’s Social Security Contributions |
G.O.P. fees and expatriate quota |
|
Employer’s Employee’s ContributionContribution
Non-Seychellois 0% Applicable Rate Seychellois 50% of applicable Applicable rate Rate |
M.A.F.W. = 1 person
GOP 25% of the specified rates as stated in the GOP regulations per person per month |
In the case of a non-Seychellois employee, where Employer’s Contribution specified above is 0% of the rates in the Social Security Act, the employer shall take out an acceptable policy of health insurance in respect of each employee.
In the event that the licensee’s retention is in excess of 25%, GOP fee is payable in a convertible foreign currency equivalent to the rupee amount stipulated.
SCHEDULE 11
Car Hire and Taxi Operator
PART 1
Trades Tax and GST Concessions
|
Other Tourism Operators |
Capital Equipment |
Minor operating Equipment |
Motor Vehicle* |
Chauffeur Driven cars** |
|
Car Hire Operator |
0% Trades Tax
0% GST |
0% Trades Tax
GST at concessionary taxable value |
25% Trades Tax or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value |
50% of applicable Trades Tax rate
GST at concessionary taxable value |
|
Taxi Operator |
N/A |
N/A |
25% Trades Tax or 50% of applicable rate of Trades Tax, whichever is higher
GST at concessionary taxable value
|
N/A |
*Qualifying vehicles are limited to passenger motor vehicles.
**Full-time drivers need to be employed for each motor vehicle.
PART 2
Serial Security, G.O.P Concessions - Car Hire Operator
|
Service Provider |
Social Security Contributions |
G.O.P fees and expatriate quota |
|
Car Hire Operator |
Employer’sEmployee’s ContributionContribution
Seychellois
50% of applicable Applicable rate Rate
|
N/A |
SCHEDULE 12
Business Tax
Licensed Accommodation, Island Resort Hotel Operator, Restaurant. Casino Operator, Tour Operator, Tour Guide, Water Sport Operator (Motorised and Non-Motorised), Operator of Tourism Leisure Related Activities, Helicopter Services Operator, Equestrian Tourism Operator and Car Hire Operator.
R250,000 nil
Excess over R250,000 15%
SCHEDULE 13
Fuel Concessions for Electricity Production
|
Service Provider |
Criteria to be met |
Trades Tax |
|
Licensed Accommodation/ Island Resort Hotel Operator |
1. The Licensed Accommodation/Island Resort must be in a location where it cannot be adequately supplied with electricity from PUC
2. Fuel shall be used solely for the generation of electricity for consumption by the licensed accommodation
3. A sealed energy meter shall be installed and data on specific fuel consumption shall be kept Fuel must be purchased directly from SEPEC and paid in a convertible foreign currency |
0% TT
0% TT |
SCHEDULE 14
Fuel Concessions to Specified Service Providers
|
Hire craft Operator |
1. Receipts, proof of charters from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item. |
0% TT |
|
Yacht/Live- aboard operator (permanent) |
1. Receipts, proof of charters from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item 1. |
0% TT |
|
Necessary Means of Sea Transportation |
Shuttle boats for hotels and restaurants (outside of hotels) that use their boats widely for the purpose of ferrying goods, staff and clients to and from the island and rely on this means of transport as the principal means of access to the island. |
0% TT |
|
Dive Centre/Dive Operator |
1. Receipts, proof of dives from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item 1. |
0% TT |
|
Tour Operator (for licensed motor boats) |
1. Receipts, proof of excursions from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item 1. |
0% TT |
|
Cruise Ship Operator (permanent) |
SEPEC Rate |
0% TT |
|
Cruise Ship Operator (temporary) |
SEPECT Rate |
0% TT
0% GST |
|
Ferry Services (Cargo) Operator |
Ferry engaged in transporting goods for permitted development on islands. Refund will be used on receipts certified by the developer and the Project Manager |
0% TT |
|
Helicopter Service Operator |
1. Receipts, proof of excursions from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item 1. |
50% TT
|
|
Yacht/Live-aboard Operator (temporary) |
1. Receipts, proof of excursions from a log book or other information as may be required by the Trades Tax Division shall be required by the licensee.
2. Concessions shall be on a refund basis upon production of the documents specified in item 1.
|
0% TT |
SCHEDULE 15
Tourism Trading Incentives
|
Product Enhancement Specialists |
GOP Exempted Social Security Exempted |
|
Foreign Experts/Consultants |
GOP’s Exempted Social Security Exempted |
|
Note: Application should be made to the Seychelles Tourism Board (STB) in the form of a detailed programme which includes proposed certification upon completion. This will then be endorsed and approved by SIB.
|
|
SCHEDULE 16
Marketing and Promotion
The allowable deduction from the taxable income of a business shall be 200% of actual or qualifying expenditure in respect of marketing and promotion for all of the sectors. The amount qualifying for the deduction shall be 5% of turnover of the business or the actual expenditure incurred in respect of marketing and promotion whichever is the lower.
SCHEDULE 17
Special deduction in respect of training expenses
Expenditure of a business for the purpose of training certify as such by the Seychelles Tourism Board shall be an allowable deduction from the taxable income of a business to the extent of 150% of approved expenditure incurred.
Business Tax Deduction
(a) 200% Business Tax deduction on salaries paid by an employer to a qualified graduate of Seychelles Institute of Technology, Farmer’s Training Centre, Maritime Training Centre, Seychelles Tourism Academy in respect of the 12 months of full-time employment, subject to social security being paid.
(b) 150% Business Tax deduction on salaries paid by an employer to a qualifying part-time student of Seychelles Institute of Technology, Farmer’s Training Centre, Maritime Training Centre, Seychelles Tourism Academy in respect of his/her work attachment, subject to Social Security being paid.
SCHEDULE 18
Non-Monetary Benefits
|
Description
Accommodation
Airline Transport
Entertainment allowance/Reimbursement
Motor vehicle
Productivity Bonuses/Incentive Schemes
Any other Incentives Scheme As approved by MOF |
Employer’s Social Security Contribution |
Remarks |
|
0% |
Accommodation benefits, as per SSF Employers Guide provided to a Seychellois or non-Seychellois employer and which includes Utility Bills such as electricity, water and telephone bills. |
|
|
0% |
Cost of airline/ferry transport both domestic and international provided to staff. Domestic-Full exemption International-Limited to once a year. |
|
|
0% |
Provided the total entertainment allowance/reimbursement in any one month does not exceed 20% of the basic salary. |
|
|
0% |
Private Motor Vehicle and other transportation cost provided to staff working in the tourism industry for the purpose of home to work travel. |
|
|
0% |
End of financial year productivity bonuses payments as per approved incentives scheme endorsed by MOF. |
|
|
0% |
|
SCHEDULE 19
Part 1
Accelerated Depreciation for Accommodation Providers
(Allowable on capital investments, other than land and
buildings)
|
Year 1 |
45% |
|
Year 2 |
40% |
|
Year 3 |
30% |
|
Year 4 |
25% |
|
Year 5 |
10% |
PART 2
Accelerated Depreciation for activities other than
Accommodation Providers
(Allowable on Capital Investments, other than land
and building)
|
Year 1 |
45% |
|
Year 2 |
40% |
|
Year 3 |
25% |
|
Year 4 |
10% |
|
Year 5 |
5% |
SCHEDULE 20
Validity of Certificate of Entitlement
A certificate of entitlement shall remain valid ?
(a) until the date stipulated in an existing and valid certificate of entitlement: or
(b) until the 31st December 2012 or earlier than the date specified in the valid certificate of entitlement, as mutually agreed by the holder of the valid certificate of entitlement and the Minister.
__________________
