SADC Agreement on Tax Matters is ratified by the National Assembly
June 25, 2021
The National Assembly voted on Wednesday 23rd June to ratify the SADC Agreement on Tax Matters.
The Agreement will assist member countries on tax matters covering four main areas:
- Exchange of information on Tax Matters
- Carry out tax examinations internationally
- Carry out simultaneous tax examinations and
- Assist in the collection of taxes
The ratification of the agreement which Seychelles signed in 2012, will allow Seychelles to enhance its rating with the Organisation for Economic Co-operation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes
To note, Seychelles is to submit its Supplementary Review request to OECD by July 2021 and the ratification of the SADC Agreement on Tax Matters will enable the country to improve its current rating of ‘partially compliant’. The current rating is based on a review that the OECD Global Forum carried out in 2020.
One of the weakness was the fact that Seychelles was yet to ratify the SADC Agreement on Tax Matters.
By ratifying the Agreement, Seychelles is expected to improve on its rating during its Supplementary Review. There will be other legislations that will be amended during July 2021 to support the supplementary review.