A company incorporated in Guernsey is treated as tax resident in Guernsey in any year of charge. Companies resident in Guernsey are subject to income tax on their worldwide income (foreign tax relief is available).
A standard rate of 0% applies to most companies that are tax resident in Guernsey. However, income arising from certain activities is taxed at 10% or 20%.
The 10% rate applies to income arising from:
• certain types of banking business;
• custody business;
• fund administration (in relation to unconnected third parties);
• fiduciary business;
• domestic insurance business; and
• insurance management and insurance intermediary business.
The 20% rate applies to income arising from:
• trading activities regulated by the Guernsey Competition and Regulatory Authority, such as telecommunications;
• the importation and/or supply of gas or hydrocarbon oil in Guernsey;