Guernsey Taxation: Corporate
The standard rate of income tax for companies is 0%. Certain income however is taxed at higher rates as set out below.
- Specified banking activities (this includes money lending, lease purchase, hire purchase and similar financing arrangements): 10%.
- Profits derived from activities that are regulated by the Office of Utility Regulation: 20%.
- Income derived from Guernsey land and buildings, i.e. property development and exploitation of land (including income derived from the sale of extracted materials): 20%.
- Rental income: 20%
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.
Certain events trigger a deemed distribution and in particular, the investment income of a company is always deemed to be treated as distributed. There are some exemptions to deemed distributions, usually where the income in question has already been subject to taxation in Guernsey or elsewhere.
Non Guernsey incorporated companies are taxed on the same basis.