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Seychelles – Indonesia Double Tax Treaty

Seychelles – Indonesia Double Tax Treaty

The avoidance of paying the taxes twice on incomes and the prevention of the fiscal evasion in Seychelles is made with the help of the double taxation agreements signed by the insular state with many countries, including Indonesia. Foreigners looking to start a business in Seychelles should pay attention to the tax structure in this country and should solicit assistance and information from our team of company formation representatives in Seychelles.

What are the taxes covered by the DTT signed by Seychelles and Indonesia?

In order to understand the provisions of the double taxation treaty signed by Seychelles and Indonesia, it is recommended to observe the following tax matters as stated by this important document:

  • • the income tax and the business tax imposed in the contracting states are covered by the DTT;
  • • the dividends and the interests paid by an Indonesian company with a permanent establishment in Seychelles are levied only in this state (Seychelles);
  • • the 10% rate represents the tax imposed on royalties which is payable by companies of one of the contracting states;
  • • the capital gains derived by an Indonesian company in Seychelles are levied only in Seychelles.

Setting up an offshore in Seychelles is often the choice of many foreign investors looking to take advantage of a solid tax system and varied tax reliefs that apply for their businesses. For complete assistance at the time of company formation in Seychelles, please do not hesitate to ask our advisors.

Our team of specialists can provide step-to-step representation in the process or registering any of the Seychelles offshore legal entities. Our team can present any legal requirement investors may have to comply with, based on the business sector of interest. 

You can also contact us if you need information on the tax system imposed here to businesses and individuals. 

We also invite you to contact us if you want to incorporate a Seychelles IBC, one of the most popular ways to set up a business here as a foreign investor. 

This legal entity can develop many types of activities and it can be fully exempted from the payment of corporate taxes on income, as long as its business activities are not related to Seychelles (however, the business address has to be registered here).  

What is a permanent establishment in Seychelles?

Companies from Indonesia looking to start the activities in Seychelles need to have a permanent establishment which can be a branch, a factory, an office or any kind of management place as long as it respects the legislation in this state.

Methods for the double tax elimination

The tax credit is often the applicable method for the elimination of double taxation. The tax exemptions and the deduction of the tax expenses are also important and necessary methods applicable to the avoidance of the double taxation whether in Seychelles or in Indonesia.

To understand better the provisions of the double tax treaty signed by Seychelles and Indonesia and to have a complete idea about how you can set up a company in Seychelles, we invite you to get in touch with our team of company incorporation representatives in Seychelles.