Fitzroy Tax Services 1 Guernsey taxes Background to taxation Guernsey funds most of the island’s state expenditure through income tax. Throughout each quarter, the employer should deduct tax from their employees on each payday. Guernsey has no VAT, death duties, inheritance taxes, capital gains, transfer or wealth tax. As a result, most Guernsey-registered companies are treated as resident for tax purposes. Guernsey has a basic rate of corporation tax of 0% on profits arising applicable to most companies which are Guernsey tax resident. Tax haven Guernsey has 10 parishes and is part of the Common Travel Area. Tax haven Guernsey has a population of about 65,500 and is a British dependency. No other property taxes apply. Two instalments due on 30 June and 31 December. Financial services, including banking, fund management, and insurance, have a major influence on employment and the economy in Guernsey. All rights reserved. Excise duty is classed as an internal tax. Transfer taxes. There has been economic growth in the financial services, construction, retail, and public sectors. The standard rate of corporate income tax is 0% with exceptions for financial service companies (10% tax rate), utility companies (20% tax rate) and large corporate retailers (varies depending on the profits, maximum 20%). the territory does not have the indicated tax or requirement), NP stands for Not Provided (i.e. Some may be as high as 22%, while, for other goods, the rate may be free. These cover Guernsey and Alderney, while Sark has its own rates set by the Chief Pleas. Guernsey has a favourable personal and corporate tax regime with no Capital Gains, Inheritance or Value Added Taxes. Companies paying dividends to Guernsey resident individuals are required to deduct or account for the difference between the tax incurred by the company and the shareholder’s individual tax rate (20%) on actual distributions. The personal tax rate is a flat 20%, after deduction of personal allowances and reliefs with the facility, for those with high incomes, to cap their liability. 30 November following the year of charge (calendar year). Companies pay income tax at the current standard rate of 0% on taxable income; however, income derived from certain businesses may be taxable at a 10% or 20% rate. Your message was not sent. Company income from property or property development is also taxed at 20%. Guernsey has introduced zero basic rate corporation tax on profits arising on most business carried out on the Island. Please select at least two territories for comparison. The rates vary according to the commodity. The official languages of Guernsey are English and French. Document Duty is paid on a graduated-rates basis and ranges from 2% to 4%. Please contact a member of the PwC Guernsey Tax Team for further advice. The Channel Islands, located in the English Channel, are the last remnants of the medieval Dukedom of Normandy. Guernsey introduced economic substance legislation for accounting periods commencing on or after 1 January 2019. Ohio has a 5.75% sales tax and Guernsey County collects an additional 1.5%, so the minimum sales tax rate in Guernsey County is 7.25% (not including any city or special district taxes). The Guernsey income tax year is the same as the calendar year, 1 st January and ending on 31 st December. Income from compliance and other related activities provided to regulated financial services businesses (such as advising on corporate governance, risk management, and compliance with the regulatory framework” The main taxes are income tax at one rate of 20%; social security contributions are also payable. This is charged at the flat rate of 20% after allowances, but is subject to a tax cap, of which there are two different options available for taxpayers. The Employee Tax Instalment (ETI) Scheme is a scheme whereby the employer deducts income tax from its employees and pays this over to the Guernsey Income Tax Office. Please see our general guide to Guernsey income tax [258kb] for more information. Please contact for general WWTS inquiries and website support. Please try again. PwC Channel Islands has one of the largest and most experienced corporate and personal tax departments in the Islands, with offices in Jersey and Guernsey. Income Tax bills and payments Income Tax for Practitioners & Technical Information Income Tax on pensions Personal income tax rates Tax is payable at the rate of 20% on net income after allowances ( see the Deductions section for a description of allowances ). Visit our. © 2017 - 2020 PwC. Property owners and occupiers may be liable for small parish taxes. Please see www.pwc.com/structure for further details. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The Ohio sales tax rate is currently %. Guernsey also offers high-net-worth individuals the opportunity to benefit from a tax cap (currently £110,000 on non-Guernsey source income and £220,000 on worldwide income). Currently, the official language spoken is Engli… By continuing to browse this site you agree to the use of cookies. ‘The main driver is the fact that our income tax allowances are so feeble, our income tax allowances in Guernsey at the moment are nearly a thousand pounds lower than in the UK, so anybody on a normal income, not a high income, but an income below the UK higher rate tax threshold, is actually paying more income tax in Guernsey than they would do if they were living in England. Guernsey includes all the islands in the Bailiwick, except Sark (including Brecqhou and Jethou) for income tax purposes and the income tax rate is 20%. 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