Guernsey set to make corporate taxation reforms

Any firms not already paying 15% or more in tax will be charged a top-up tax

Guernsey is set to make changes to meet international tax obligations on multi-national companies.

The three Crown Dependencies - the Isle of Man, Jersey and Guernsey - agreed to meet reforms to international taxation rules approved by the G20 in 2021.

Large multinational companies based in Guernsey will be taxed at least 15% from 2025.

It will apply to businesses with a group turnover of more than €750m (£650m).

The Policy & Resources Committee (P&R) is due to put forward the framework for the changes in a policy letter.

The businesses community in the island is due to be consulted as part of the drafting of the new legislation.

In Guernsey, currently banking and insurance firms are taxed at 10%, with large retail businesses,d landownership and rental income paying 20%.

P&R's President, Deputy Lyndon Trott said: “Guernsey has consistently championed the need for a level playing field in tax co-operation and we have a long track record of maintaining the highest standards in tax transparency and fairness."

He added: "Guernsey wants to provide certainty and stability for businesses in the island, ensuring Guernsey remains competitive while staying at the forefront of emerging global norms in tax matters."