Guernsey, Channel Islands
Guernsey operates a flat 20% income tax rate for all individuals resident in Guernsey or deriving Guernsey-source income.
The 2022 Guernsey Budget introduced a number of changes in the field of personal taxation.
The personal allowance has been increased from 11,875 British pounds sterling (GBP) to GBP 12,175, and earners of more than GBP 100,000 will have their allowance reduced by GBP 1 for every GBP 5 exceeding this limit. This withdrawal of allowances has been extended beyond the personal allowance (see the Deductions section).
Interim assessments for individuals will now be issued prior to the commencement of the year of charge with instalment payments now due at the end of each calendar quarter (i.e. 31 March, 30 June, 30 September, and 31 December) rather than 30 June and 31 December. This is expected to come into effect from the 2023 year of charge.
Social security rates have been increased from 6.6% to 6.7% for the employer contribution and from 6.6% to 6.8% for the employee contribution. Self-employed contributions have been increased from 11% to 11.3%. Lower earnings limits have been increased to GBP 152 (weekly) and GBP 658.67 (monthly), and upper earnings limits for both employer and employee have been increased to GBP 3,027 (weekly) and GBP 13,117 (monthly).