As a member of the OECD/G20 Inclusive Framework on BEPS, Seychelles has committed to implementing the minimum standards, including the requirements set out under Action 13 for Country-by-Country Reporting (CbCR). These regulations are intended to increase tax transparency and assist tax authorities in risk assessment and base erosion prevention.

This article outlines the key obligations, deadlines, penalties, and practical considerations for multinational groups operating in or through Seychelles.

Legal and Regulatory Framework

• Primary Legislation:
  • Business Tax (Country-by-Country Reporting) Regulations, 2021
• Competent Authority:
  • Seychelles Revenue Commission (SRC)
• International Participation:
  • Seychelles is a signatory to the OECD’s Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of CbC reports.
  • Full member of the OECD Inclusive Framework on BEPS.

Filing Obligations

• Ultimate Parent Entity (UPE) resident in Seychelles that is part of a multinational enterprise group with consolidated annual revenue of at least SCR 11.7 billion (approximately EUR 750 million) in the preceding fiscal year.
• Constituent Entities in Seychelles may be required to file if:
  • The UPE is not obliged to file in its jurisdiction;
  • There is no agreement in place for exchange of CbC reports between the UPE’s jurisdiction and Seychelles;
  • There is a systemic failure in the exchange agreement.

CbCR Notification Requirement

• All Seychelles-based constituent entities must file a notification to the SRC.
• Deadline: On or before the last day of the reporting fiscal year.
• The notification must specify whether the entity is the reporting entity and, if not, identify the reporting entity and its jurisdiction.

CbCR Report Filing

• Deadline: Within 12 months after the end of the reporting fiscal year.
• Format: OECD XML Schema
• Submission method: Electronic submission via the Seychelles Revenue Commission portal

Content of the Report

The CbC report must include the following for each tax jurisdiction in which the group operates:

• Revenues (split between related and unrelated parties)
• Profit (loss) before tax
• Income tax paid and accrued
• Number of employees
• Stated capital
• Retained earnings
• Tangible assets
• List of constituent entities and their activities

Penalties for Non-Compliance

Failure to comply with the filing or notification requirements may result in:

• Initial fine of up to SCR 50,000
• Additional daily penalty of SCR 500 for continued non-compliance
• Other administrative sanctions, including audits or potential exchange restrictions

Key Considerations

• Master File and Local File: Seychelles has not explicitly mandated these as of the latest guidance, but MNEs are encouraged to prepare them for alignment with OECD standards.
• Exchange of Information: Reports are automatically exchanged with other jurisdictions under the MCAA network.
• Consistency: Ensure alignment between the CbC report and other transfer pricing documentation to mitigate audit risk.

Useful Resources

OECD CbCR Resource Centre: https://www.oecd.org/tax/beps/country-by-country-reporting.htm

Seychelles Revenue Commission (SRC): https://www.src.gov.sc