Direct Personal Tax

The principal direct tax in Guernsey is income tax which is applicable to individuals and to companies resident in Guernsey. For individuals resident in Guernsey income tax is charged at a flat rate of 20% of assessable income (less personal and other allowances and allowable deductions).

For most resident companies the standard rate of income tax, currently 0%, applies to assessable income. However where a Guernsey resident company has income from regulated activities there is currently a higher rate of tax.

Income from local land or property is taxable at a higher rate.  Capital gains resulting from real estate development or disposals of assets, other than in the course of trade or business, are not taxed.

On 27 October 2009 the States of Deliberation resolved that a planned review of taxation in the island shall proceed on the presumption of a 10% general rate of corporate tax. Until such time as the review is complete the existing income tax regime remains in place.

It is anticipated that any changes to be introduced will not be implemented until 2013 at the earliest and it is expected that there will be a period of transition to smooth the changeover.

Capital Taxes

There are no capital taxes in Guernsey – no Capital Gains Tax, no Inheritance Tax, no Gift Tax, no Death duty payable.

Indirect Personal Tax

The principal indirect tax in Guernsey is duty payable on alcohol, petrol and cigarettes.

Adrian at Machon Accounting has been heavily involved in all aspects of Guernsey Taxation for almost 13 years now. Contact him on adrian@machonaccounting.com to discuss matters further.