On 6 August 2021, the Seychelles Ministry of Finance, Economic Planning and Trade announced that a tax exemption will be applied to private pension benefits.

Private pension schemes - which are completely separate from the contribution made to the Seychelles Pension Fund - are common incentives implemented by companies for their employees who consider it a supplement they can benefit from either on retirement or upon leaving the company. Owing to the Income and Non-Monetary Benefits Tax Act, taxes are currently levied on private pension benefits twice; in fact, private pensions are taxed progressively on the benefits that an employee goes home with as well as on the payments made by the employer. As such, the exemption will eliminate the double taxation on private pensions.

The Government hopes that this amendment encourages more companies to offer their staff the option to contribute in a private pension while aiming to foster a culture of saving among individuals.