Tourism (Incentives) Act

Number of Act: 
7
Date of promulgation: 
28 December 2003
 

 

EDITORS' NOTE: The digital versions of legislation accessible through SeyLII are UNOFFICIAL and provided solely in the interests of increasing access to legal information.  Their currency and accuracy cannot be warranted.  Official versions of Seychelles legislation can only be obtained in hard copy from the Attorney-General’s Chambers, Department of Legal Affairs

 

CONSOLIDATED TO 30 JUNE 2012

 

 

Act 7 of 2003

Act 1 of 2008

S.I. 13 of 2008

S.I. 76 of 2009

S.I. 14 of 2010

S.I. 101 of 2011

S.I. 41 of 2012

 

 

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

 

_________________

 

 

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.

 

__________________________

SI. 13 of 2008

SI. 76 of 2009

SI. 14 of 2010

* SCHEDULE 1

 

PART 1

 

Licensed Accommodation

 

Trades Tax and GST Concessions

 

Construction

Materials and

   capital  

  equipment

 

    Minor   Operating Equipment

Consumables

 

 Minor Vehicles

Buses for staff transportation

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






GST at concessionary taxable value

 

 

 

1Golf carts for use of transportation of clients will be treated as Capital Equipment,

 

 

 

PART 2

Social Security Contributions and G.O.P Concessions

 

 

 

Social Security Contribution

G.O.P fees and expatriate quota

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

 

 

Hotel Consumables

Guest Consumables

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

 

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

 

 

 

 

 

 

 

SCHEDULE 2

PART 1

Island Resort Hotels

Trades Tax and GST Concessions

 

 

 

Construction

   materials and

     capital  

    equipment

 Minor Operating

    Equipment

Consumables

            Motor Vehicles

 

Hotel/Guests

 

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

 

 

 

Social Security Contribution

G.O.P fees and expatriate quota

Employer’sEmployer’s

ContributionContribution

Non-Seychellois   0%    Applicable

Rate

 

Seychellois                     Applicable

50% Applicable Rate     Rate

 

 

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

 

 

 

Hotel Consumables

Guest Consumables

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

 

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

 

 

 

 

 

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      

 

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

 

 

 

 

 

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.

 

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

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

     0% Trades Tax

 

 

 

 

          0% GST

 

  0% Trades Tax

 

 

 

 

GST at concessionary taxable value

 

1 vehicle at 25% Trades Tax rate on 50% of applicable rate of Trades Tax, whichever is higher

 

GST at concessionary taxable value

 

 

 

 

 

PART 2

Social Security, G.O.P. Concessions

 

 

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




0% GST for

    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





   0% GST

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


0% GST for

     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


     GST at concessionary taxable value

           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








  0% GST

 

 

                   *Temporary

 

 

 

0% Trades Tax

 

 

     0% GST

 

0% Trades Tax

 

 

      GST at

concessionary

 taxable value

 

N/A

 

 

N/A

 

0% Trades

     Tax

 

 0% GST

 

 

 

 

 

 

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)







(temporary)

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





0%Trades Tax

 

 

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




              N/A

 

 

 

 

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

 




0% Trades

     Tax

 0% GST

 

 

 

 

 

0% Trades

     Tax

 0% GST

 

 

 

 

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

 


GST at

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.

 

__________________