Guernsey To Raise Taxes In 2016 Budget
by Jason Gorringe, Lowtax.net, London
30 September, 2015
Guernsey's 2016 draft Budget includes a raft of new tax proposals, with tax revenues for 2015 expected to be five percent below targets.
The following measures will increase the tax burden for companies, to raise GBP3m (USD4.6m):
- The 10 percent company tax rate will cover businesses providing custody services;
- The 20 percent rate will newly cover the importation and/or supply of hydrocarbon oil or gas;
- The 20 percent rate will apply to retail business carried on in Guernsey where the company has a taxable profit of more than GBP500,000 in a year from retail sales; and
- The real property tax on commercial property will be increased by 2.5 percent in real terms, but retail businesses will be spared this increase.
Other measures in the Budget include that:
- Personal income tax allowances will be frozen;
- Alcohol duties will be hiked by 2.5 percent in real terms;
- The tax on real property for households will be hiked by 7.5 percent in real terms; and
- Duty on fuel will be hiked to raise GBP2.15m.
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