The total number of Guernsey-registered companies which have gained approval for International Company (IC) status has grown to 140.
ICs are companies which, if their business plans are approved by the Administrator of Income Tax for Guernsey, become liable to pay local income tax at an agreed rate of between more than zero and up to 30%.
This increases the range of tax-paying options for foreign investors who wish to conduct international business through a Guernsey-based entity. Before the introduction of IC enabling legislation in 1993 there was only the 'either/or' option of paying the standard rate of income tax at 20% on all the income of a locally registered company or of paying no local income tax at all by electing to fulfil the requirements of a Guernsey incorporated 'exempt' company.
Peter Crook, Director General, said: 'The current number of ICs have exceeded expectations expressed in 1993. It is encouraging that they are becoming increasingly popular as professional advisers grow ever more comfortable with the flexibility and advantages of ICs now proven over time.'
A significant minority of ICs are involved in a wide range of commercial activities but the majority are engaged in group finance operations. Most entities with IC status are Guernsey companies but some are branches of companies incorporate in a wide variety of foreign jurisdictions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Nigel Taylor, Director of Investment Business or Tammy Menteshvili, Deputy Director of Investment Business on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at:
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