Guernsey Double Tax Treaties
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Guernsey Double Tax Treaties

DeltaQuest can assist you whether you are an individual or corporate entity in setting up a Guernsey trust or Guernsey foundation to achieve complete and comprehensive asset protection. For more information about Guernsey double tax treaties, please read the information below. Alternatively, to establish a Guernsey Trust or foundation please complete our Application Form, or if you require further information please Contact Us.

There are two Double Taxation treaties signed by Guernsey – with UK and with Jersey.

Relief in respect of Double Taxation on income arising in the United Kingdom

The effect of this agreement is that, in the case of any income arising in the United Kingdom which is subject both to United Kingdom income tax and Guernsey income tax, Double Taxation Relief may be obtained and, in general terms, this relief would equal the amount of Guernsey income tax attributable to such income. Individuals resident in Guernsey and having income which is subject to tax in the United Kingdom are entitled to claim “Proportionate Allowance” relief from the United Kingdom Inland Revenue. If their United Kingdom income consists of dividend or debenture interest, they are entitled to claim Unilateral Relief from the United Kingdom. If their United Kingdom income consists of items other than dividends or debenture interest, claims for relief should, in the first place, be submitted to the Administrator of Income Tax, Guernsey.

Relief in respect of Double Taxation on income arising in Jersey

The effect of this agreement is that Jersey income tax payable, whether directly or by deduction, in respect of income from sources within Jersey, is allowed as a credit against any Guernsey income tax payable in respect of that income.

Relief in respect of income tax paid in other countries Individuals resident in Guernsey and having income which is subject to tax in other countries (i.e. other than the United Kingdom and Jersey) are entitled to claim relief from tax in Guernsey; the amount of this relief will, in most cases, be three-quarters the effective rate of Guernsey tax and any overseas tax which is not relieved by credit will be relieved by deduction. If the overseas effective rate is less than three-quarters of the Guernsey effective rate, relief will be given at the overseas rate.

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