Taxation

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Taxation

Guernsey is self-governing and self-funding. The island’s right to make its own laws and raise its own taxes is a long established constitutional principle.

Guernsey residents are liable to pay income tax equal to 20% of their income.

Guernsey has a basic rate of corporation tax of 0% on profits arising. An intermediate rate of 10% applies to certain regulated activities, including banking and insurance.

Guernsey has no sales tax, no capital gains tax, nor death or inheritance tax.

Tax Transparency & Information Exchange

Guernsey is at the forefront of standards on tax transparency and information exchange.

In October 2014, Guernsey joined with 50 other jurisdictions in confirming its agreement to new global standards in automatic exchange of information, the Common Reporting Standard (CRS).

The previous year, Guernsey signed a Model 1 agreement with the United States government in relation to the Foreign Account Tax Compliance Act (FATCA), upon which CRS was based. A similar agreement has been signed with the UK Government (CDOT).

 

 

In addition, Guernsey has signed more than 60 Tax Information Exchange Agreements (TIEAs) to date.

“Guernsey has been one of the most active jurisdictions promoting transparency in practice. The number of TIEAs signed so far seriously enhances Guernsey’s reputation as a responsible and transparent financial centre, as recognised by the Global Forum peer review."Pascal Saint-Amans, the OECD’s Director, Centre for Tax Policy, on the signing of Guernsey 50th TIEA in November 2013

Guernsey has also signed tax sharing agreements, including 13 Full Double Taxation Arrangements (DTAs) and 12 Partial DTAs to date.

Click here to see Guernsey's complete list of TIEAs

Click here to see Guernsey's complete list of DTAs

For more information on any of the above contact the Guernsey Income Tax Office on +44 (0) 1481 724711, or go to www.gov.gg/tax.