Unless the company has elected to be treated as exempt, any company which is resident in the Island is chargeable to income tax on all of its income wherever arising, whether or not remitted to the Island. A company which, although incorporated and resident outside Guernsey, carries on business in the Island through a branch or other established place of business is liable to Guernsey income tax only on profits arising or accruing within the Island.

A company is regarded as resident in Guernsey if it is incorporated or is controlled in the Island and has not been granted exempt becoming resident in the Island for Guernsey tax purposes. This enables a non-Guernsey investment company to be administered in the Island without having to elect for exempt status.

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.