Guernsey, Channel Islands

In view of the low rate of tax, no special incentives are available to local businesses in Guernsey.

Foreign tax credit

Guernsey has signed full double taxation treaties (DTTs) with Cyprus, Estonia, Hong Kong, Isle of Man, Jersey, Liechtenstein, Luxembourg, Malta, Mauritius, Monaco, Qatar, Seychelles, Singapore, and the United Kingdom and tax information exchange agreements (TIEAs) with 61 jurisdictions. Guernsey entered into a DTT with Bahrain on 29 September 2024. However, the agreement has not yet come into effect.

If no bilateral agreement exists, relief available to Guernsey-resident companies is the lesser of the other territory’s effective rate or three quarters of the Guernsey effective rate.