Seychelles – the Perfect Offshore Jurisdiction, Experts Say
September 3, 2015
Economy of the Seychelles islands got the high score from analytical agency Fitch Ratings for its stability and positive trends, according to company’s staff. The islands got the mark B+ by long-term credit rating. According to forecasts the figure is not going to change in the near future.
What are the benefits for business company incorporation and investors on the strength of such situation? First of all, the jurisdiction’s internal environment will be stable. The Government will continue to reduce an external debt. By the way, Seychelles authorities introduced such policy in 2008 when the first significant problems with debt repayment occurred. Thereat a new fiscal strategy was implemented which allowed stabilizing the economy within a few years.
Representatives of the Monetary Fund recommended the government to develop a strategy aimed at achieving the ratio of country’s debt to GDP on the level below 50% during the next three years.
Yet Fitch Ratings experts claim that Seychelles’ external debt is high. According to recent data, it amounts to more than half of country’s GDP. However, the jurisdiction achieved a good result due to import duties increase. But the amount of debt to GDP will not essentially reduce as the debt is calculated in a foreign currency.
This is the relevant information for entrepreneurs and investors, who have their offshore companies registered in the Seychelles and for those who think of incorporation of company there.
The Seychelles government introduced additional tax measures in accordance with the budget for the coming year. These measures are aimed at increasing the transport fees and excise taxes on alcohol and tobacco. These initiatives have already been included in the budget for the next year and should contribute to implementation of one of the most important island’s economy goals – creation of a primary budget. Some taxes will be reduced as part of tax legislation improvement. Government promises to reduce the rate of corporate taxes in the measurable future. According to experts, the Seychelles economy remains stable.