SEYCHELLES Law and Practice Contributed by: Valery Freminot, Salina Sinon, Ruby Simeon and Hazel Naiken, Rivard Nariman
5.6 Transfer Pricing Transfer pricing rules are applicable in Sey - chelles. The rules apply to an entity participating in controlled arrangements and with an annual turnover exceeding SCR1 million. Transfer Pricing Methods There are no specific transfer pricing methods in Seychelles. However, the country relies on the OECD transfer pricing guidelines and the United Nations (UN) Practical Manual on Transfer Pric - ing for Developing Countries. Reporting Obligations Applicable entities are expected to file a “Relat - ed Party Dealings Schedule” with their tax return (first due for the 2024 tax year and filed by 31 March 2025). Additionally, they should provide transfer pricing documentation upon request from the local tax authority. Documentation Applicable entities must prepare documentation verifying that their controlled arrangements align with the arm’s length principle. The documenta - tion should include, among other items, details about the business’s operations, organisational structure, financial accounts, and competitors. Transfer pricing documentation and related information must be retained for seven years. The documentation should be submitted in one of three languages – namely, English, French, or Creole. Failure to Comply With Transfer Pricing Rules Entities should be aware that penalties can be imposed for various violations, including failure to provide documentation, providing false or misleading documentation, and neglecting to retain and maintain relevant documents.
Furthermore, the Revenue Commissioner has the authority to distribute, apportion or allocate income or gains and expenses between busi - nesses if they are carried out by associated per - sons or by the same person, in order to reflect the outcome that would have occurred in a transaction between independent parties deal - ing with each other at arm’s length. 5.7 Anti-Evasion Rules General Anti-Avoidance Rules The Revenue Commissioner is empowered to: • determine the nature of a transaction or an aspect of a transaction that forms part of a tax avoidance scheme; • disregard a transaction lacking substantial economic effect; • determine the nature of a transaction if its form does not reflect its substance; and • treat separate businesses operated by the same person as a single business if the busi - ness activity has been divided under a tax avoidance scheme. Other Anti-Avoidance Rules Economic sway In Seychelles, a resident company is required to provide the local tax authority with specific details regarding its physical office, staff, and active directors. A non-resident company must furnish evidence of its connection to a perma - nent overseas establishment. The legislation mandates that companies oper - ating in certain sectors must have sufficient substance. This includes trading companies (distribution and service centres), holding com - panies, fund management companies, financing and leasing companies, IP holding and licensing companies, shipping companies, and banking and insurance companies.
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