2019 Budget Proposal
Guernsey’s 2019 Budget is due to be debated by the States of Deliberation (Guernsey’s parliament) at its meeting on 6 November 2018. Section 5 of the 2019 Budget sets out proposed changes to be introduced under domestic legislation in order to meet commitments given to the European Union (“EU”) in relation to the introduction of economic substance requirements for companies that are regarded as tax resident in Guernsey. These changes are to be introduced through a combination of amendments to existing legislation by a new ordinance, a new regulation and guidance, all due to be published and brought into effect from 1 January 2019.
This briefing note provides a summary of the key changes being proposed in the Budget to introduce substance requirements in Guernsey and the context in which these proposals have arisen.