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.

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.

Guernsey-UK DTT

The revised Guernsey-UK DTT came into force in respect of Guernsey Income Taxes on 1 January 2020. The provisions of Article 27, concerning assistance in the collection of taxes, entered into effect from 1 January 2022.