TaxCorporate TaxGuernsey reviewing tax regime

Guernsey reviewing tax regime

Offshore centre is looking at its corporate tax framework because of changing perceptions in the wake of upheaval in the global economy

Guernsey is reviewing its corporate tax framework as perceptions harden in
the wake of the global financial meltdown.

Its ‘zero-10 regime’ allows a zero rate of income tax on company profits
except for businesses providing specific banking activities, which are charged
at 10%.

However it has become clear that EU member states are now unlikely to accept
that this framework complies with international standards and the EU Code of
Conduct,
Investment
International
reported.

Guernsey’s chief minister Lyndon Trott said: “Our ‘zero-10’ strategy was
always intended to be a multi-stage process, in order to ensure that our tax
revenues are sufficiently sustainable in the light of changing economic
uncertainties.

“As a result of the changes in international attitudes, the terms of
consultation on this issue will be broader than had previously been envisaged,
and will aim, working with the UK and other EU Member States, to ensure that our
fiscal regime remains competitive and within international standards.”

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