Investment Incentives:
To make an investment in Seychelles an easier choice and help ensure that the investor generates the maximum possible yield on that investment, the Government of Seychelles has introduced a range of legislative measures offering concessions to businesses operating in various sectors of the economy.

Under the provisions of the Tourism Incentives Act and Agriculture and Fisheries Act respectively, concessions are granted on Business tax, Withholding Tax on royalties, GST, Trade Tax and tax relating to the employment of foreign labour.

The Government has also been actively cutting away at the country’s Trade Tax rates (customs duty), with the result that, on all but a handful of revenue sensitive items, it now stands at 0%.

In recent years both business tax and employers’ social security contribution rates have been reduced and GST on capital equipment has been exempted for a wide range of goods and services, including educational institutions, licensed medical operators, communications and cable television services.

Investment policy:
Seychelles stated investment policy aim is, “to maintain and improve the standard of living of the Seychellois citizens by creating the economic conditions conducive to increased wealth generation by private businesses and individuals.”

This is reinforced by the subsequent vision:

"To build an economic environment in which free enterprise can flourish; where the Government assumes its proper role as regulator and facilitator of economic development; where the ideals of transparency, fair play and equality of treatment are paramount; and a policy that maintains a stable society in which all people are afforded the opportunity to realise their maximum potential."

In order to achieve this, the country has committed itself to supporting an investment friendly climate that guarantees that Seychellois citizens and overseas investments will compliment each other and foster appropriate linkages with all sectors of the economy.

And while the country’s investment policies encourage the exploitation of Seychelles’ natural resources, the improvement of national infrastructure and an increase in productivity levels, it also stresses the paramount importance of achieving this in an environmentally sound and sustainable manner.

Rights of Investors:
Recognising the importance of securing investors’ confidence, the government of Seychelles has introduced strict legislation, guaranteeing the rights of investors in a wide range of areas.  These include:

• Right to autonomy of investment:
  The right of the investor to select the sector in which to make an investment, the form and type of investment, the method of raising capital, the scale of investment in accordance with the site allocated for the project, an investment partner and the duration of operation of the project in accordance of the land lease terms if any is secured. This also covers the right to seek approval for a business in one or more industries and trades, and for the investor to make their own decisions concerning the investment.
• Right to access and use of investment resources:
  A registered investor has the right of equality in access to and use of sources of credit capital and aid funds, and in use of land and natural resources in accordance with the law; to lease or purchase equipment and machinery either domestically or overseas in order to carry out an investment project; and to recruit from the domestic and foreign labour market to fulfil management and other tasks, to provide technical labour and to provide expertise in accordance with production and business requirements as long as the number of foreign employees recruited is as per the quota granted and in accordance with the immigration criteria of Seychelles.
• Right to import and export:
  An investor has the right to import directly or to import by way of authorised dealers; equipments, machineries, raw materials, supplies and goods for investment activities; and to export directly or to export by way of authorized dealers and to sell its products.
• Right to conduct marketing and advertising:The investors right to advertise and market its products and services and to enter into advertising contracts directly with organisations which are authorised to publish advertisements is secured. In line with health-orientated policies in force in numerous countries, exceptions are made in the case of alcohol and cigarettes, which have certain restrictions.
• Right to process and re-process goods relevant to investment activities:
  The investors has the right to undertake activities involved in the processing or reprocessing of products; to place orders for processing or reprocessing of goods domestically, or to place orders for processing of goods overseas.
• Mortgage of land use rights and of assets attached to land:
  Investors having investment projects shall be permitted to mortgage land use rights and assets attached to land with credit institutions operating in Seychelles or abroad in order to borrow capital for implementation of projects.~
• Right to receive investment incentives as provided for under the law.
• Right to have access to and use public services on a non-discriminatory basis.
• Right to have access to legal instruments and policies relating to investment: to data on the national economy, to data about each economic sector and to other relevant information about investment activities; and to contribute its opinions on laws and policies relating to investment 
• Right to exercise other rights in accordance with the existing laws and regulations.

Obligations of Investors:
While every effort is made to ensure the rights of investors, the creation of a safe, stable and growing economy demands that investors in Seychelles are also aware of their obligations, which mirror those in place in any other modern, dynamic economy. Seychelles’ investment authorities place great importance on ensuring that the country’s investment regulations meet international standards, to ensure that businesses in the country can trade internationally and continue to maintain their international reputation for probity and accountancy.

Investors operating in Seychelles are expected to abide by the following obligations:

• To comply with the provisions of the governing laws on investment procedures and to carry out investment activities correctly in accordance with the relevant approvals granted. This includes the responsibility of the investor for the accuracy and truthfulness of the contents of investment proposals and registration; and of the lawfulness of document on certification.
• To discharge fully their financial obligations, including taxation, in accordance with the law
• To carry out the provisions of the laws on accounting and auditing
• To carry out the provisions of the laws on registration of companies and other legal entity
• To carry out the provisions of the employment laws and regulations

Investment Guarantees:
The Government of Seychelles conducts regular assessments of its legislation pertaining to investment in the country, and implements measures designed to create an ever more competitive, internationally compatible investment climate.  Concessions granted for investment are guaranteed for the duration of the Certificate of Entitlement and cannot be withdrawn or amended to the disadvantage of the Promoter during the period of entitlement without the written consent of the Promoter.

Business Taxation:
Transparency, responsibility, fairness and efficiency are the core principles guiding the Seychelles’ fiscal policy.
The principal tax revenue source is a broad based Goods and Services Tax (GST) .  This is levied on all imported goods,  locally manufactured goods,  locally provided services and is borne by all consumers. However , exception have been given only to 13 basic food items.

The country’s highly competitive business tax rates are as follows:

Focused only on business activities and applied only to business profits.  As of January 2007, only profits above SR.250,000 are taxable, at a rate of 40%.  Incentive rates of 15% are applicable for businesses engaged in specific areas of encouraged investment (tourism, fisheries, agriculture etc...)

Income Tax:  There is no personal income tax in Seychelles.

Witholding Tax:  Withholding Tax is applied to certain categories of payments to non-residents:

International Agreements:
In recent years Seychelles has aggressively pursued a number of Double Taxation Avoidance (DTA) agreements, gaining preferential tax terms for local businesses and businesses registered in Seychelles doing business overseas.

To date ten DTA’s have been signed, with countries including South Africa, Indonesia, Malaysia, Belgium and China.  The DTA struck with China is one of the most beneficial so far agreed to by the Chinese authorities and will, potentially, see Seychelles emerge as a major conduit for investment in the country’s rapidly growing economy.

Seychelles’ ability to channel money into China from Europe is enhanced by the Europe-compatible time difference and language skills of Seychelles’ population.

The country’s DTA’s, as well as other bilateral trade agreements Seychelles has entered into, are continually reviewed to ensure that their provisions encourage international trade and investments and provide investors with increased certainty over their tax treatment; reduce the scope for double taxation of income and capital; improve profits and reduce risks.

Seychelles’ signed Double Taxation Avoidance Agreements:

• China
• South Africa
• Oman
• Botswana
• Mauritius
• Thailand
• Malaysia
• Vietnam
• Cyprus
• Belgium

Regional and International Cooperation
The vast potential market of the Western Indian Ocean and east and southern African region is opened up to businesses operating out of Seychelles, through the country’s membership of the Indian Ocean Commission (IOC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) offering a combined total population of several hundred million, guided by broadly free-market principles.

COMESA Member States:

• Angola,
• Burundi,
• Comoros,
• Democratic Republic of the Congo,
• Djibouti,
• Egypt,
• Eritrea,
• Ethiopia,
• Kenya,
• Libya,
• Madagascar,
• Malawi,
• Mauritius,
• Rwanda,
• Seychelles,
• Sudan,
• Swaziland,
• Uganda,
• Zambia,
• Zimbabwe

Members of IOC:

• Comoros,
• Madagascar,
• Mauritius,
• Reunion,