A company is treated as resident in Guernsey if it is controlled (owned) in Guernsey, is incorporated in Guernsey and has not been granted an exemption from tax.
The standard rate of income tax for companies is 0%. Certain income however is taxed at higher rates as set out below.
Company Intermediate Rate – 10% (income from banking business, domestic insurance business, fiduciary business, insurance intermediary business and insurance manager business).
Company Higher Rate – 20% (income from trading activities regulated by the Office of the Director General of Utility Regulation, and income from the ownership of Guernsey land and buildings).
Distributions to a Guernsey resident member are taxable on that member at 20%, although the company is responsible for collecting the tax due and paying it over the Income Tax Office. Distributions to a non-resident member do not attract any liability to Guernsey tax.