1. Overview
The Investment Promotion Act (IPA Act) came into operation on the 1st January 1995. There are also associated Regulations called the Investment Promotion Regulations were effected on the same date.
Essentially the IPA Act and Regulations have been brought into operation by the government to centralize the function of granting investment incentives to businesses and are designed to guarantee that incentives given to businesses will be maintained for a set period of time, usually 5 or 10 years.
IPA concessions and incentives are equally available to domestic as well as foreign investors.
The Investment Promotion Act provides guidelines for the Minister of Finance to issue a Certificate of Approval under the Act to investors specifying the concessions and incentives granted, in an effort to encourage specific investment activities in Seychelles.
The Division of Trade and Commerce in the Ministry of Finance is responsible to receive enquiries in respect of IPA applications.
2. Investment Policy
There are 5 broad areas of investment covered in the IPA. They are:
1. Agricultural and Marine Resources Investment;
2. Industrial and Manufacturing Investment;
3. Professional Services Investment;
4. Small Scale Industries Investment; and
5. Tourism Development Investment.
Each of these areas are defined in the IPA Act.
3. General Incentives
Please refer to Investment Promotion Act.The Business Taxation Division only acts in relation to Certificates of Approval issued by the Trade and Commerce Division in the Ministry of Finance.
4. Free Trade Zones
Seychelles Industrial Trade Zone (SITZ) administered by Seychelles International Business Authority
5. Export Incentives
N/A
6. Financial Assistance
N/A
7. Regional Incentives
N/A
8. Industrial Financing
N/A
9. Development Programmes And Incentives For Specific Industries
10. Tax
10.1. Rates
Under the IPA the following rates of tax are applicable:
Agricultural and Marine Resources Investment.
i. Export Oriented Unit 15% in excess of R 24,000
ii. Special Growth Area Normal Rates as Specified in the Business Tax Act
iii. General category Normal Rates as Specified in the Business Tax Act
Industrial and Manufacturing Investment
i. Export Oriented Unit 15% in excess of R.24,000
ii. Special Growth Area Normal Rates as Specified in the Business Tax Act
iii. General category Normal Rates as Specified in the Business Tax Act
Professional Services Investment
i. Export Oriented Unit 15% in excess of R.24,000
ii. Special Growth Area Normal Rates as Specified in the Business Tax Act
iii. General Category Normal Rates as specified in the Business Tax Act
Small Scale Industrial Investment
i. Export Oriented Unit 15% in excess of R 24,000
ii. Special Growth Area 15% in excess of R 24,000
iii. General category Normal Rates as Specified in the Business Tax Act
Tourism Development Investment
i. Hotels Normal Rates as Specified in the Business Tax Act
ii. Restaurant Normal Rates as Specified in the Business Tax Act
iii. Casinos Normal Rates as Specified in the Business Tax Act
iv. Car-Hire Operators Normal Rates as Specified in the Business Tax Act
v. Tour Operators/Travel Agents Normal Rates as Specified in the Business Tax Act
vi. Dive Centres Normal Rates as Specified in the Business Tax Act
vii. Boat Hirers/Charters Normal Rates as Specified in the Business Tax Act
viii.Yachts and Liveaboards Normal Rates as Specified in the Business Tax Act
ix. Taxi Operators Normal Rates as Specified in the Business Tax Act
x. Special Growth Area 15% in excess of R24,000
xi. General Category Normal Rates as Specified in the Business Tax Act
10.2. Deferral Period
N/A
10.3. Tax Holiday
N/A
10.4. Depreciation
Rates of Depreciation allowable on Capital Investments, other than land and building will be at the following rates.
(a) Agricultural and Marine /resources Investment
Year 1 45%
Year 2 40%
Year 3 20%
Year 4 15%
Year 5 5%
(b) Industrial and Manufacturing Investment
Year 1 45%
Year 2 40%
Year 3 30%
Year 4 25%
Year 5 10%
(c) Professional Services Investment
Year 1 45%
Year 2 40%
Year 3 20%
Year 4 15%
Year 5 5%
(d) Small Scale Industries Investment
Year 1 45%
Year 2 40%
Year 3 30%
Year 4 25%
Year 5 10%
(e) Tourism Development Investment
Year 1 45%
Year 2 40%
Year 3 30%
Year 4 25%
Year 5 10%
10.5. Other