Act 32 2022 - Act 32 - 2022 - Income and Non-Monetary Benefits Tax (Amendment) Act 2022

[30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 642 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT INCOME AND NON-MONETARY BENEFITS TAX (AMENDMENT) ACT, 2022 (Act 32 of 2022) ARRANGEMENT OF SECTIONS SECTIONS 1. Short title 2. Amendment of section 2 3. Amendment of section 4 4. Amendment of section 5 5. Repeal and replacement of Third Schedule 6. Amendment of Fourth Schedule [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 643 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT INCOME AND NON-MONETARY BENEFITS TAX (AMENDMENT) ACT, 2022 (Act 32 of 2022) I assent Wavel Ramkalawan President 29th December, 2022 AN ACT TO AMEND THE INCOME AND NON-MONETARY BENEFITS TAX ACT, (CAP 273). ENACTED by the President and the National Assembly. Short title 1. This Act may be cited as the Income and Non-Monetary Benefits Tax (Amendment) Act, 2022. [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 644 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT Amendment of section 2 2. The Income and Non-Monetary Benefits Tax Act (Cap 273), in this Act referred to as the “principal Act”, is amended in Section 2 by repealing the definition of “fair market value”. Amendment of section 4 3.(1) The principal Act is amended in Section 4 by repealing subsection (5) and substituting therefor the following — “(5) The tax imposed under subsection (2) is imposed on the actual cost or the taxable value of non-monetary benefits.” Amendment of section 5 4. The principal Act is amended in Section 5 by inserting after subsection (5) the following new subsection — “(6) Notwithstanding subsections (1) and (2), an emolument received in arrears by an employed person from an employer shall be attributed to the month in respect of which the emolument was due to be paid and the employer shall withhold tax at the rate specified in the First Schedule as if the emolument received in arrears was received in the month to which the emolument is attributed.” Repeal and replacement of Third Schedule 5. The Third Schedule to the principal Act is repealed and there is substituted therefor the following new Schedule — “THIRD SCHEDULE Section 4(2) Rate of tax payable by employers in respect of non- monetary benefits 1. An employer shall be liable to pay tax at the rate of 15% of the actual cost or the taxable value of a non-monetary [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 645 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT benefit provided to an employed person and such tax shall be computed in accordance with the Act in respect of each non- monetary benefit provided to the person employed.” Amendment of Fourth Schedule 6. The fourth Schedule to the principal Act is amended — (a) by repealing the table under paragraph 1 and substituting therefor the following new table — FOURTH SCHEDULE Taxation of Non-Monetary Benefits 1. Taxation of non-monetary benefits Item Type of benefit Taxable Value/ E xemptions/ Exception provided to or on Actual Cost behalf of an employed person 1 Accommodation Type Per month Per employed (a) The provision of person (SR) accommodation for business pu rposes if (a) Onsite shelter 300 the period of the (b) Dormitory accommodation 600 a c c o mmodation is (c) One bedroom dwelling 2,500 t h r e e months or less. (d) Two bedroom dwelling 3,000 (e) Three bedroom dwelling 4,000 (b) The provision of (f) Four bedroom dwelling 5,000 a c c o m m o d a t i o n to an employed person in the construction and tourism sector. [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 646 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT 2 Utilities benefits Actual cost incurred by the Utilities benefit provided to an includes utility bills employer employed person of the tourism such as electricity, sector water, telephone, cable tv, or home internet access 3 Provision of clothing Identifiable uniforms or safety clothing or protective clothing 4 In-house benefit Provided the total benefit in any (perquisites) one month does not exceed 20% Actual cost incurred by the of basic salary. employer 5 Meals The cost incurred in providing meals to an employed person 6 Motor Vehicle (a) Actual cost incurred on An employed persons benefit fuel and renting of motor to the extent that: vehicle (a) A vehicle logbook is maintained and the logbook substan tiates that (b) Where an employer owns the employed person is in a motor vehicle and fact called out for provision is made for it afterhours duties on a to be used by the regular basis employee, the taxable value will be SR600 per (b) Private motor vehicle day. provided to an employed person in the tourism sector for the purpose of home to work travel 7 Medical Expenses (a) Medical fees in regards to medical tests relating to employing foreign workers . (b) Medical expenses incurred by employers on behalf of an employed person. 8 Life Insurance Actual cost incurred by employer 9 Health Insurance Applied to all employed persons. [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 647 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT 10 Insurance e.g. The cost incurred of the insurance house and content, benefit provided to employees so as income protection, to encourage employers to insure the motor vehicle or house, motor vehicles and other fire and burglary content of their employees in case of insurance burglary or fire disasters. 11 Transport to/from Transportation cost provided to work (excluding employed persons for the purpose of motor vehicle) home to work travel. 12 Airline and ferry Actual cost incurred by Exemptions will be granted: transport employer - when the transportation services of airline/ferry both domestically/ internationally is provided to an employed person for business or work purposes. - If the itinerary for the trip including proof for grounds of travel is provided. 13 Tuition fees and Actual cost incurred by An employed person whose training training cost employer is limited to that provided by certified institutions recognised by the Seychelles Qualifications Authority, shall be eligible for exemption from tax on the following — 1. Class fees, registration, book fees, examination fees and assessment fees; 2. Airfares for the first travel from the Seychelles to the place of study and for the last travel from the place of study to the Seychelles. 3. Bus pass for local students. Where an employer pays an employees' children's school fees, the full cost incurred will be exempted. 14 Employer Actual cost incurred by contribution employer towards private pension (b) by repealing paragraph 2 to the Fourth Schedule. [30th Dece m b e r 2 0 2 2 ] Inco m e and Non-Monetary Benefits Tax 648 (Amendment) Act REPUBLIC OF SEYCHELLES SUPPLEMENT TO OFFICIAL GAZETTE ACT I certify that this is a correct copy of the Bill which was passed by the National Assembly on 9th December, 2022. Mrs. Tania Isaac Clerk to the National Assembly