Taxation

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Taxation

Guernsey is self-governing and self-funding.  The island’s legislature determines its own laws and raises its own taxes.   

The personal income tax rate for Guernsey residents is 20% after deduction of personal allowances.

Guernsey has a basic rate of corporation tax of 0% on profits arising applicable to most companies which are Guernsey tax resident.  A 10% rate of corporation tax is applicable to income arising from certain regulated activities including banking and insurance.

There are no capital gains, inheritance or sales taxes.

 

Governing

Self-governing

Self-funding

Personal Tax Copy

Personal Tax

20%

Tax

Corporation tax

Basic rate of 0%

Whitelisted by both the OECD and EU

Tax Transparency and Information Exchange

Guernsey is at the forefront of meeting international standards on transparency and information exchange and has been whitelisted by both the OECD and EU.

2013

Signed a Model I agreement with US Government

2017

Signed the OECD’s Multilateral instrument

2019

Introduced economic substance legislation

In December 2013, Guernsey signed a Model I agreement with the United States government relating to implementation of FATCA based reporting and committed to early adoption of the OECD Common Reporting Standard (CRS) for the automatic exchange of information in 2014.

In 2017, Guernsey confirmed its commitment to international tax co-operation by signing the OECD’s Multilateral instrument to implement tax treaty related measures to combat Base Erosion and Profit Shifting (BEPS) and treaty abuse.

Guernsey introduced economic substance legislation in 2019 to ensure that companies which are tax resident in Guernsey and undertaking specific activities can demonstrate substantial economic presence in the island.

“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 Information Exchange Agreements (TIEAs) with numerous countries to date, including Full Double Taxation Arrangements (DTAs) and Partial DTAs.

See Guernsey’s complete list of TIEAs.

See Guernsey’s complete list of DTAs

For further information on any of the above contact Guernsey Revenue Service on +44 (0) 1481 724711 or visit their website.