GSL / International Taxation / Guernsey

Guernsey tax system - taxation of Guernsey companies and individuals: VAT, income tax and capital gains. Tax treaties of Guernsey.

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Taxes of Guernsey

0%
Сorporate tax
No
Capital gains tax
No
VAT
0% (dividend), 0% (interest), 0% (royalty)
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
20%
Corporate tax (in detail)
The corporate income tax rate is 0%, with a few exceptions when the tax rate is 10% or 20%
Capital gains tax. Details
Capital gains in Guernsey are not subject to tax
VAT. Details
No
Other taxes
Social Contributions, Property Transfer Tax
Government fee
Stamp duty

Personal Income Tax

Guernsey tax residents pay income tax on their worldwide income.

Income tax is levied at a flat rate of 20%.

Corporate Income Tax

Tax resident companies are taxed on their worldwide income.

The corporate income tax rate is 0%, with a few exceptions when the tax rate is 10% or 20%.

The tax rate of 10% applies to certain types of banking and insurance activities, fund administration, investment management services, fiduciary business, company maintenance services, and operation of an aircraft registry.

The tax rate of 20% applies to trading activities regulated by the Competition and Regulatory Authority (such as telecommunications), importation and/or supply of gas and certain hydrocarbon products, large retail businesses (with profits exceeding GBP 500 000), real estate companies with property located in Guernsey, and some others.

Capital Gains Tax

None.

CFC Rules

None.

Withholding Tax

Guernsey does not levy withholding tax on interest, royalties or services.

Dividends paid to non-residents are also exempt from withholding tax.

VAT/Goods and Service Tax (GST)

None.

Social Security Contributions

Social security contributions are payable in respect of earnings of up to GBP 153 660 per year. The contribution rates are 6,6% for the employer and 6,6% for the employee.

Property Transfer Tax

There is a special duty payable in respect of real estate transactions and transactions with shares in companies that hold Guernsey real estate. The scale is progressive, with rates ranging from 2% to 4%.

International tax treaties

Guernsey has 14 Double Tax Treaties (DTC) and 61 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:

14 DTCs: Estonia, Hong Kong, Isle of Man, Jersey, Cyprus, Liechtenstein, Luxembourg, Malta, Mauritius, Monaco, Qatar, Seychelles, Singapore, UK.

61 TIEAs: Australia, Austria, Anguilla, Argentina, Bahamas, Belgium, Bermuda, British Virgin Islands, Botswana, Brazil, Bulgaria, Canada, Cayman Islands, Chile, China, Costa Rica, Czech Republic, Denmark, Faroe Islands, Finland, France, Hungary, Iceland, India, Indonesia, Ireland, Italy, Germany, Gibraltar, Greece, Greenland, Latvia, Lesotho, Lithuania, Macau, Mauritius, Mexico, Montserrat, Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, Romania, Saint Kitts and Nevis, San Marino, Seychelles, Slovakia, Slovenia, Spain, Swaziland, Turkey, Turks and Caicos, Sweden, Switzerland, South Africa, United Kingdom, Uruguay, USA, Japan.

Guernsey has also signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention became effective for Guernsey on June 1, 2019.

Exchange Control

There are generally no restrictions on foreign exchange transactions.

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