Seychelles low tax offshores

The Seychelles Companies (Special Licenses) Act 2003 introduced a new corporate entity - Seychelles Special License Company (CSL). CSLs are more complex and more expensive than the traditional IBCs, but they have a number of great advantages.

Actually, The CSL is formed under the general provisions of the domestic Seychelles Companies Act 1972, but its special tax regime and other features are defined by the Seychelles Companies (Special Licenses) Act 2003.

CSL is formally considered to be tax-resident of Seychelles, and this status allows for easier conduct of company's business abroad, attracting less suspicion and scrutiny. That means that, being a low-tax company, Special License Company is able to bypass foreign blacklisting. Special License Company is exempt from any kinds of witholding taxes on dividends, interest and royalties, from stamp duties on any property or share transfers and transactions; however the company is liable to 1,5% taxation on its worldwide income. CSLs may also access and use the growing number of double tax avoidance treaties concluded by Seychelles, including those with China, South Africa, Indonesia, Thailand, Oman, Botswana and Mauritius. Double Tax Treaties are also signed but not ratified between Seychelles and Belgium, Cyprus, Malaysia, Vietnam and Zimbabwe. There are negotiations on DTA conclusion completed with Egypt, UAE, Russia, Bahrain, Czech Republic, Tunisia, Namibia and Kuwait.

A CSL is the appropriate corporate tool for businesses that require specific regulation. For example, the Companies (Special Licenses) Act 2003 prescribes that a CSL may be organized to undertake the business of investment management and advice, offshore banking, offshore insurance and re-insurance, investment services, holding, marketing, intellectual property and franchise, human resources, and it may operate as a headquarters or holding company. CSL is also the prescribed corporate entity for operating under the Seychelles International Trade Zone License.

Beside being liable to 1.5% tax on its worldwide income, Seychelles CSL is subject to the following government fees: