“The Seychelles is a member of the Organisation for Economic Co-operation and Development and the agreement will address taxation issues arising in relation to the flow of business and any movement of people between the Isle of Man and Seychelles,” said Eddie Teare, the Isle of Man’s treasury minister.

The Isle of Man has so far signed double taxation agreements with nine countries. The island also has tax information exchange agreements with 27 countries, including the US, the UK, Japan, Germany and China.

The Seychelles has a total of 16 double taxation agreements in place, including China, South Africa and the UAE.

Under a double taxation agreement, individuals or companies based in one jurisdiction but with interests in the other jurisdiction will not be taxed by both sets of authorities on the same income.