Guernsey: A leading centre of substance Commitment to economic substance:
OECD Whitelist
EU Whitelist
Substance legislation
Whitelisted in 2019
Whitelisted by the EU review process in 2019
Guernsey introduced Economic Substance legislation in 2019
Commitment to the BEPS agenda and AML:
OECD MLI
OECD MCAA
Guernsey signed the OECD’s Multilateral Instrument to implement tax treaty related measures
Guernsey is a signatory of the Multilateral Competent Authority Agreement to share relevant information in relation to Country-by-Country Reporting
FATF
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations
Commitment to tax transparency:
OECD CRS
OECD
US FATCA
Guernsey was an early adopter of the OECD Common Reporting Standard for the automatic exchange of information in 2014
Whitelisted in 2009 and branded a co-operative jurisdiction in 2015
In 2013 Guernsey signed a Model I agreement with the United States to implement Foreign Account Tax Compliance Act based reporting
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Guernsey: A leading centre of substance What is in scope of Guernsey substance requirements? The Income Tax (Substance Requirements) (Implementation) Regulation, 2018, applies to tax resident companies which have been incorporated in Guernsey and which have not been granted an exemption from tax for the year of charge, and those that are controlled by shareholders resident in Guernsey, irrespective of where they were incorporated. The following are in scope of Guernsey substance requirements: Banking
Fund management
Intellectual property
Insurance
Headquartering
Holding companies
Shipping
Financing and leasing sectors
Distribution and service centres
What is out of scope of Guernsey substance requirements? Substance requirements do not apply to the following: collective investment schemes (funds established as authorised or registered schemes), limited partnerships (LP), limited liability partnerships (LLP), or a specific accounting period in which no income is generated from relevant activity. Firms and clients now look to jurisdictions that can meet, or have already met, the new global standards. Guernsey Finance research, published in mid-2019, reported that 85% of managers consider substance to be a key determinant of locational choice…
Is substance a key determinant of jurisdictional choice? Yes
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No
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