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Economy and Banking Sector of Guernsey

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Guernsey: 0.0 - 20.0%

Withholding tax rates applied on payments of interest and dividends in Guernsey are shown in Table 1.

Dividends Interest
Natural Persons (residents) 20.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Guernsey.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Guernsey: 12 Signed Agreements

Guernsey signed DTAs which already came info force with the following jurisdictions:

HK Hong Kong
IM Isle of Man
JE Jersey
LU Luxembourg
MT Malta
MU Mauritius
QA Qatar
SG Singapore
GB United Kingdom

There are also several agreements between Guernsey and other jurisdictions which were signed but haven't yet come into force:

CY Cyprus
MC Monaco
SC Seychelles

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 57 Signed Agreements

Guernsey signed TIEAs which already came info force with the following jurisdictions :

AR Argentina
AU Australia
BS Bahamas
BM Bermuda
CA Canada
KY Cayman Islands
CN China
CZ Czech Republic
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
JP Japan
LV Latvia
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
RO Romania
KN Saint Kitts and Nevis
SM San Marino
SC Seychelles
SI Slovenia
ZA South Africa
SE Sweden
GB United Kingdom
US United States
UY Uruguay

There are also several agreements between Guernsey and other jurisdictions which was signed but haven't yet come into force:

AT Austria
BE Belgium
BW Botswana
BR Brazil
VG British Virgin Islands
CL Chile
CR Costa Rica
ID Indonesia
IT Italy
LS Lesotho
LI Liechtenstein
LT Lithuania
MO Macau
MS Montserrat
PT Portugal
SK Slovakia
SZ Swaziland
CH Switzerland
TR Turkey
TC Turks and Caicos Islands

Automatic Exchange: Starts in September 2017

Guernsey signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 51 Bilateral Agreements to Receive Information

Guernsey has signed bilateral agreements with 51 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom
UY Uruguay

Automatic Excnange: 59 Bilateral Agreements to Send Information

Guernsey has signed bilateral agreements with 59 jurisdictions to automatically send information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BZ Belize
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
CR Costa Rica
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
ID Indonesia
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
LC Saint Lucia
VC Saint Vincent and The Grenadines
WS Samoa
SM San Marino
SC Seychelles
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom
UY Uruguay

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Guernsey
IGA in effect since 13 December 2013, Model 1

Guernsey has FATCA agreement with the U.S. in effect since 13 December 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Guernsey are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Guernsey's financial accounts hold in U.S. financial institutions will be reported to Guernsey's authorities.

Further Information