On January 27th 2014 a double taxation agreement between Guernsey and Seychelles was signed in London. The Bailiwick of Guernsey was represented by the Minister for Treasury and Resources, Gavin St Pier and Republic of Seychelles by the High Commissioner for the Seychelles, Marie-Pierre Lloyd.
The Double Taxation Agreement will provide more certainty in tax matters between two nations and encourage trade and investment activities between two countries.
The agreement provides a zero tax rate for interest and dividends and a maximum five percent tax on royalties. The DTA offers permanents establishment rules that apply to the income tax in both jurisdictions.
Guernsey’s Minister for Commerce and Employment, Kevin Stewart commented about the importance of links between the countries due to their sharing of similar challenges as island jurisdictions. Currently Guernsey has 10 double taxation agreements.