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.
To note, Seychelles is to submit its Supplementary Review request to OECD by 30th June 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 main weaknesses singled out 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.