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, 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 60 jurisdictions.
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.
The revised Guernsey-UK DTT comes into force in respect of Guernsey Income Taxes on 1 January 2020. The revised DTT came into force on 1 March 2019 in respect of withholding tax (WHTs).