Seychelles IBC Acts Amendments
The International Business Companies (Amendment) Act, 2018 (“Amendment Act”) came into effect on 1 January 2019 which amends the International Business Companies Act, 2016 (“IBC Act”).
Territorial Tax System now applies to both local companies and IBCs
Seychelles will continue to adopt the territorial tax system such that a Seychelles tax resident is liable for Seychelles tax on Seychelles sourced income but not on foreign sourced income.
The restriction on IBCs carrying on business in Seychelles has been removed. If a domestic company or Seychelles IBC carries on business in Seychelles it must comply with Seychelles local tax regulations.
According to the amendment in the IBC Act & Section 5 of the Business Tax Act 2009, the SRC is issuing Tax Identification Number (“TIN”) to all IBCs which meet the following criteria:
- The Company is in good standing
- Accounting records kept at registered office in Seychelles
In view of the above, all IBCs, which are in good standing and keep their accounting records at registered office in Seychelles (whether physically or electronically), are eligible to apply for a TIN. We are happy to assist if you have the requirement of the above.
REDOMICILE OF FOREIGN IBC TO SEYCHELLES
The Seychelles Government has taken the initiative to further enhance Seychelles as an international finance centre and welcome existing companies registered in other jurisdictions to redomicile and continue operations as a Seychelles IBC. Recomicile process takes less than 1 week after receiving the following required documents from the company in outgoing jurisdiction:-
- Apostilled Certificate of Incorporation
- Apostilled Certificate of Good Standing
- Apostilled Memorandum and Articles of Associations
- Apostilled Register of Directors
- Apostilled Register of Members
- Certificate of Director
- Incorporation Form
- Due Diligence documents on all the directors, shareholders and beneficial owners who hold 10% or more interest of the company
Seychelles IBC could be a good option for offshore companies that may not fulfill the new economic substance regulations in their respective jurisdictions. After your company has been redomiciled to Seychelles, it can benefit from its territorial tax system with a valid internationally recognised TIN.
If you have further queries, please feel free to contact your Keyway representative.