Guernsey is self-governing and has its own system of taxation and a long-standing, fair and competitive tax regime that meets OECD standards of transparency and information exchange. Guernsey has a favourable personal and corporate tax regime with no Capital Gains, Inheritance or Value Added Taxes.

Company tax

The three tax rates for companies in Guernsey are as follows:

  • Company Standard Rate – 0%, income from businesses, offices and employments and other sources.
  • Company Intermediate Rate – 10%, income from banking business, domestic insurance business, fiduciary business, insurance intermediary business, insurance manager business, administration of controlled investments, provision of custody services, provision of investment management individual client services, operation of an investment exchange, compliance and other related activities and, income from operating an aviation registry.
  • Company Higher Rate – 20%, income from trading activities regulated by CICRA, the importation/supply of gas or hydrocarbon oil, large retail business carried on in Guernsey (with a taxable profit of more than £500,000), and the ownership of Guernsey land and buildings, i.e. Property development and exploitation of land (including income from the sale of extracted materials) Rental income, income from the business of the cultivation or use of the cannabis plant, and from the prescribed production or prescribed use of controlled drugs.

It is a legal requirement for new businesses to inform the Revenue Service office. The staff will need be told the nature of the new business, the date of commencement and, if possible, an estimate of profits for the first year of trading.

Discussions with the Revenue Service can be facilitated by the Locate Guernsey Team, feel free to make contact with us.

Guernsey continues to lead on tax transparency and meeting global standards through intergovernmental information exchange agreements which help to further enhance its reputation as a responsible and transparent financial centre.

Tax treaties & agreements

Guernsey continues to lead on tax transparency and meeting global standards through intergovernmental information exchange agreements which help to further enhance its reputation as a responsible and transparent financial centre.

Tax Information Exchange Agreements (TIEAs)

Currently, Guernsey has TIEAs signed with more than 50 jurisdictions. Guernsey has been given ‘tier one’ status by the OECD which requires a minimum of 12 signed Tax Information Exchange Agreements.

Guernsey Tax - Locate Guernsey

Double Taxation Agreements (DTAs)

Guernsey has signed agreements for the avoidance of double taxation with a number of territories. Copies of these agreements can be found here. Partial DTAs (which generally relate to personal taxation only) exist with a number of additional territories and can also be found by following the same link.

In general the effect of a comprehensive DTA is that income tax payable in the other territory, in respect of income arising from sources in that territory, may be allowed as a credit against any Guernsey income tax payable in respect of that income.

There are exceptions to this general rule, such as some types of income being taxed only in the territory of source, or only in the territory where the recipient lives.

Intergovernmental Agreements (FATCA)

Guernsey has intergovernmental agreements with the UK and USA to improve international tax compliance. These consist of obligations for the automatic exchange of information. Financial institutions must provide the information required, to the Director of Income Tax who will then pass it onto the IRS in respect of the US Agreement and HMRC in respect of the UK Agreement.

Tax payment matters for employers

New employers should contact the Employees Tax Instalment (ETI) Department at the Revenue Service office who will provide the necessary documents, which will explain how to calculate and deduct tax when paying wages. This is similar to the ‘Pay As You Earn’ system in other jurisdictions. Free software is available to help employers manage Income Tax (and Social Security) payments. This can be found here.

For more information about the ETI scheme contact Employer’s ETI Enquiries or click here.

Download our Tax in Guernsey Fact Sheet.