Tax laws Guernsey (Crown Dependency)
Guernsey, a Crown Dependency, maintains a distinct tax system characterized by several unique features:
Personal Income Tax:
Residents: Individuals residing in Guernsey are subject to a flat income tax rate of 20% on their worldwide income.
Non-Residents: Non-resident individuals are taxed only on income sourced within Guernsey.
Tax Caps: Guernsey offers tax caps for residents, limiting the maximum tax payable:
Option 1: Tax on non-Guernsey-source income up to £130,000, plus tax on Guernsey-source income (excluding Guernsey bank interest).
Option 2: Tax on worldwide income up to £260,000, including Guernsey-source income.
New Residents: A lower tax cap of £50,000 is available for new residents for three years, contingent upon purchasing qualifying property and not having lived in Guernsey or Alderney for the prior three years.
Corporate Tax:
Standard Rate: A 0% corporate tax rate applies to most companies.
Specific Activities:
10% Rate: Applicable to income from banking, domestic insurance, fiduciary services, insurance intermediaries, and insurance managers.
20% Rate: Imposed on income from regulated trading activities and income derived from land and property ownership.
Additional Taxes:
Social Insurance Contributions: Mandatory payments based on gross earnings:
Employees: 6.8%
Self-Employed: 11.3%
Non-Employed Under Pension Age: 10.7%
No Capital Gains, Inheritance, Capital Transfer, VAT, or General Withholding Taxes: Guernsey does not levy these taxes, enhancing its appeal as a tax-efficient jurisdiction.
It's important to note that tax laws are subject to change. For the most current and personalized information, consulting the States of Guernsey's official resources or a tax professional is recommended.
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