Seychelles News – The SRC introduces the Pay As You Earn scheme

By February 24, 2022 No Comments
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Effective since 1 January 2022, the new ‘Pay As You Earn’ scheme, introduced by the Seychelles Revenue Commission (SRC), is deemed to provide small businesses falling under the Presumptive Tax Regime – i.e. businesses having less that R1 million annual turnover – more leeway in meeting their tax requirements.

Currently a pilot project, the ‘Pay As You Earn’ scheme will benefit some 10,100 businesses which mainly form part of the informal sector and will aim to encourage them to make payments in regular installments using their preferred mode so as to reduce the financial burden of having a bulk sum to pay at the end of the tax year.

With regard to advanced payment, taxpayers will be required to fill in the ‘Advance Payment Business Activity Statement (BAS)’ when effecting payment to facilitate reconciliation. It is to be noted that no penalty will apply for business availing advance payment.

During a meeting held on 17 January 2022, Nadia Jeremie – Revenue Section manager at the SRC – clarified that the scheme does not cater for ‘specified businesses’ which are using the Deduction at Source (DAS) booklet as well as businesses that are currently paying the monthly ‘Pay as You Go (PAYG) under the normal tax regime