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Today’s Top Headlines

Guernsey, Seychelles Sign DTA

by Lorys Charalambous,, Cyprus

20 February 2014

Guernsey's Minister for Treasury and Resources, Gavin St Pier, and the High Commissioner for the Seychelles, Marie-Pierre Lloyd, signed a double taxation agreement (DTA) between their territories in London on January 27, 2014.

The Government of the Seychelles said the DTA would encourage nationals of both territories to increase bilateral trade and investment. It will provide for certainty with regards to taxes payable on income generated from investments made between the two countries.

Among other provisions, the DTA sets out permanent establishment rules that apply to income tax in Guernsey, and business tax, income and non-monetary benefits tax, and petroleum income tax in the Seychelles. It provides for a zero withholding tax rate for dividends and interest, and for a maximum five percent withholding tax to be imposed on royalties.

The DTA also enables the territories' tax authorities to exchange taxpayer information, and obliges each tax authority to provide information even if it does not require the information itself, and even if the information is held by a bank or other financial institution.

Commenting on the agreement with the Seychelles, and an agreement also signed on December 17, 2013, with Mauritius, St Pier said: "Since 2011, Guernsey has worked closely with member states of the Southern African Development Community to support those countries' ability to protect their tax revenue. These two DTAs are further illustration of that work."

Guernsey's Minister for Commerce and Employment, Kevin Stewart, added: "Our links with countries such as Mauritius and the Seychelles are important. Not only do they have growing finance centers, but they are also island jurisdictions with whom we share many challenges, and can exchange expertise."

TAGS: compliance | tax | double tax agreement (DTA) | tax compliance | royalties | Guernsey | agreements | tax rates | withholding tax | dividends | Seychelles | Africa

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