New two year ‘income tax holiday’ in Guernsey
24th August 2017
Found in: Blog -
Andrew Carey of Locate asked me just how attractive are the new Guernsey tax rules being referred to as the two year income tax holiday. I am pleased to respond that at Grant Thornton we believe they make relocating to the island even more attractive and provide for an extremely tax efficient outcome.
They were introduced by amendment to our tax law, making them resilient when compared to alternative concessions that can be more easily withdrawn.
This recognises both the aim and commitment of our island’s government to attract new HNWs.
Basically it allows the extraction without Guernsey tax of past profits accumulated within companies which arrive with a new person taking up tax residence in Guernsey. This can then be combined with the necessary tax planning steps required for leaving from whence one comes from to ensure such profits are not taxed in either country.
By comparison, arriving in other new countries usually requires far more complex planning, sometimes even having to schedule in a temporary third country stay. This change makes Guernsey a much easier and safer course because one can carry out the profit extractions for up to two years after arrival, and hence why being referred to as a two year tax holiday.
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