IC LIABILITY TO GUERNSEY INCOME TAX
A Guernsey registered IC is liable to tax on it's worldwide income. A non-Guernsey incorporated IC is liable on its total Guernsey source income.
GUERNSEY SOURCE INCOME
The fact that a company may be in receipt of certain Guernsey source income does not prejudice an application for IC status. Tax on such income is liable at the specifies rate of tax but the perceived level of Guernsey source income will be taken into account by the Administrator of Income Tax when determining the rate.
INCOME TAX RETURN FORM FILED ANNUALLY
An income tax return form is issued each year to the IC's Guernsey address. The completed form, together with a copy of the IC's accounts and computations, are submitted to the Administrator of Income Tax. An income tax assessment will be sent to the IC's Guernsey address.
REMUNERATION OF NON-RESIDENTS
Guernsey tax is payable on remuneration paid by an IC to a non-resident in respect of duties performed in Guernsey (e.g. attending board meetings).
INTEREST PAID TO NON-RESIDENTS
Interest paid by an IC to a non-resident is payable without deduction of Guernsey tax. The interest is, however, an allowable expense for the purpose of computing the IC's liability to Guernsey tax.
The rate of witholding tax in respect of dividend payments made by a Guernsey registered IC is 20%.
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 Peter Crook on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at: