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Seychelles – China Double Tax Treaty

Seychelles – China Double Tax Treaty

Chinese investors in Seychelles can benefit from a stable business environment and several tax reliefs as stipulated by the double taxation treaty signed by both countries. This agreement helps both Chinese investors or from Seychelles avoid the double taxation on incomes. We invite you to talk to our team of company formation agents in Seychelles and ask about how you can set up an offshore in Seychelles. You can also solicit information about the double tax treaties signed by Seychelles.

Our specialists can help you set you your Seychelles offshore business and can provide legal representation without the need for you to be present during these formalities. 

The incorporation of a legal entity can take 1-2 weeks (preparing the documentation required by the institution, submitting these documents with the registration authorities and obtaining registration certificates). 

What are the provisions of the DTT signed by Seychelles and China?

First of all, it is good to know that the interests, royalties, and dividends resulted from offshores in Seychelles are not taxed. In other words, there is no withholding tax for repatriated dividends and interests. As a Chinese investor, you might want to have a clear picture about the provisions of the double taxation treaty signed between Seychelles and China, as follows:

  • • investors can set up a Seychelles Company Special License (CSL) in order to benefit from tax reliefs in the insular state;
  • • under the Seychelles – China double tax treaty, companies are subject to a 1.5% business tax imposed on the worldwide taxable income;
  • • there is no Chinese tax on capital gains of a Seychelles CSL;
  • • a Seychelles CSL is not subject to withholding taxes on royalties, interests, and dividends.

According to the double taxation agreement signed by Seychelles and China, the share transfers and the property transfers are exempt from stamp duties. If you have decided on opening a business in Seychelles, please feel free to get in touch with our company incorporation representatives in Seychelles for complete assistance and information.

How are the Chinese shipping and air transport companies taxed in Seychelles?

Because of the provisions stipulated by the double tax treaty between Seychelles and China, the revenues of a Chinese company dealing with air and sea transportation in Seychelles will only be taxed in China, one of the contracting states.

The elimination of double taxation through the credit method

If a Chinese citizen has incomes registered in Seychelles, the taxes for that income can be credited against the Chinese tax imposed to him/her. The amount of the credit, though, cannot surpass the amount of the Chinese tax on that income calculated in agreement to the Chinese tax laws.

We invite you to contact our team of company formation representatives in Seychelles and ask for extra details about the double tax treaty signed by Seychelles and China.