New Tax Scheme targeting businesses in the ‘informal sector’
January 18, 2022
The Seychelles Revenue Commission (SRC), has introduced a new tax payment scheme, called ‘Pay As You Earn’, (PAYE).
The new scheme which falls under the Presumptive Tax Regime, is targeting businesses currently operating in the ‘informal sector’ to register for tax purposes.
It will enable the businesses to pay their taxes as and when they earn an income, on a monthly basis.
The Presumptive Tax Regime is for small businesses earning an annual turnover of less than R1 million.
Under the PAYE scheme, businesses can pay their tax on revenue they receive every month, on which the tax rate is 1.5%.
SRC, said the sum paid will be credited to the client’s account, which will be offset at the end of the year when taxpayers lodge their Presumptive Tax Return.
“Upon lodgment of return at the end of the year the taxpayer will pay only the difference (if any) or if there are any credit, it may be carried forward for the following year. “
SRC stressed that ‘no penalties will be applicable if there is no payment made in a particular month’.
There are 10,100 businesses that fall under the regime.
In 2021, the Tax Division collected a sum of R16.1 million.
The Pay As You Earn, tax scheme is a pilot project for this year.
For more information on the scheme, click on the links below.
http://www.finance.gov.sc/uploads/files/leaflet%20Final%20version%20Pay%20As%20You%20Earn.pdf