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Guernsey: Personal Taxation

Introduction

In Guernsey there is no general capital gains tax, inheritance tax or estate duty, purchase or sales tax, VAT or capital transfer tax. The main taxes are income tax at one rate of 20%; and social security contributions are payable. Property owners and occupiers may be liable for small parish taxes.

In July, 2006, Guernsey's parliament passed a set of economic and taxation changes that includes the zero rate of corporate tax and the capping of personal tax at GBP250,000. The new tax system went into force on January 1, 2008.

The package of measures includes:

  • A zero rate of income tax on company profits, except for specific banking activities which are taxed at 10%;
  • Guernsey residents continue to pay tax at 20% on assessable income;
  • Personal tax capped at GBP250,000 on non-Guernsey income and investment income;
  • Taxation of Guernsey-resident shareholders on distributed company profits only; and
  • Wealth taxes such as inheritance tax and capital gains tax will not be introduced.

 

 

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