With effect from 1 January 2008 the standard rate of income tax for Guernsey resident companies will be zero. Although most companies will not suffer tax on their profits will ultimately become taxable in the hands of their Guernsey resident shareholders when they are distributed or deemed to be distributed.
There are no capital gains taxes in Guernsey
Tax on rateable value and Parish Rates are charged but are very low in comparison with what used to be charged in the UK.
There is no council tax in Guernsey
Excise duties are charged on tobacco, beer, wines and spirits and petroleum products. These are very low compared with the UK rates.
There is no VAT in Guernsey.
Products can therefore be imported into Guernsey less VAT.
All exports to the UK, excepting tobacco, beer, wines and spirits and petroleum products,
with a value of less than £18 are not liable for VAT. Similar
exemption agreements are in place with the larger EC countries with the
notable exception of France.
