CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Seychelles Announces Personal Income Tax Reform

Seychelles Announces Personal Income Tax Reform

by Lorys Charalambous, Tax-News.com, Cyprus

24 February 2016


The President of the Seychelles, James Alix Michel, has confirmed that changes will be made to the personal income tax system, designed to make taxation "fairer and more equitable."

In his recent State of the Nation address, Michel foreshadowed reforms designed to reduce the tax burden on low-income earners and make the personal income tax system more progressive.

Under the changes, from July 2016, individuals earning up to SCR8,555.50 (USD553.74) per month will not pay any income tax. Then, from January 2017, the first SCR8,555.50 in earnings will be subject to tax at 0 percent.

Michel also announced in his address that the Ministry of Finance will undertake a review of the tax system to determine how the Government can "maximize its revenue" and reduce tax evasion in certain economic sectors.

The measures form part of the Government's medium-term fiscal framework agreed with the International Monetary Fund, which is designed to stabilize the Government's finances and reduce public debt.

The medium-term fiscal strategy was first put in place in 2008 following a default in debt payments. The plan includes an IMF-agreed target to cut its debt-to-gross domestic product to below 50 percent by 2018.

The IMF said following the completion of its third review of the Seychelles' Extended Fund Facility (EFF) that good progress is being made by the Government towards reducing the public debt burden, with the 2015 budget surplus expected to be around four percent of GDP.

The Seychelles has received approximately USD9.1m in monetary assistance from the IMF under the EFF arrangement approved in July 2014.

TAGS: individuals | Finance | tax | budget | International Monetary Fund (IMF) | tax reform | individual income tax | Seychelles

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »