Guernsey has signed a Double Taxation Arrangement (DTA) with
It means that Guernsey has now signed 'full' DTAs with
eight jurisdictions. In addition to this DTA with Luxembourg,
Guernsey has had a DTA with the UK for many years and has signed
DTAs with Malta, in 2012, and earlier this year with the Isle of
Man, Jersey, Qatar and Singapore as well as Hong Kong last
Gavin St Pier, Guernsey's Treasury and Resources Minister,
signed the bilateral DTA with Luxembourg on Friday 10th
May in London with Luxembourg's Chargé d'Affaires to
the UK, Ms Béatrice Kirsch. The Treasury and Resources
Minister said: "This is an important further component in
Guernsey's network of tax agreements. Following on so closely
the signing of our DTA with Hong Kong, it is further
demonstration of Guernsey meeting the highest global standards of
international tax co-operation."
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry, added:
"There is already a strong link between Guernsey and
Luxembourg in relation to financial services business and this is
particularly the case with investment funds, where many platforms
will have structures in both jurisdictions. The DTA means that
individuals or companies with 'home' as one jurisdiction
but with interests in the other jurisdiction will have mechanisms
in place to prevent them from being taxed by both sets of
authorities on the same income. This clarity and certainty on
matters of taxation will make it even more attractive to conduct
business between the two jurisdictions."
Rob Gray, Guernsey's Director of Income Tax, said:
"This DTA will create a mechanism for alleviating double
taxation and exchanging tax information with Luxembourg relating to
both corporate and personal incomes. It also means that
Guernsey's network of agreements continues to cover the
majority of EU Member States and G20 countries."
In addition to agreements with major international finance
centres such as Luxembourg, Guernsey is continuing to conclude Tax
Information Exchange Agreements (TIEAs) with developing economies
in order to assist them in protecting their tax revenues.
While in London, the Treasury & Resources Minister signed a
TIEA with Botswana at the Botswanan High Commission, and a further
TIEA, with Swaziland, is expected to be concluded in the near
future. Together, the TIEAs with Botswana and Swaziland will take
the number signed by Guernsey to a total of 43.
The Treasury and Resources Minister said: "Guernsey's
tax team has built strong relationships with Southern African
Development Community countries, including Botswana and Swaziland,
over the past couple of years. The OECD's Global Forum has
emphasised the importance of working with developing countries to
share expertise on tax information exchange, thereby helping them
to protect their tax revenues."
Mr Gray commented: "In October 2011, Ron van der Merwe, the
Chair of the Tax Agreements Working Group of the SADC, said that
the negotiation of tax agreements between SADC Member States and
Guernsey was 'a major step forward in creating the basis for
exchange of information for SADC members'. The conclusion of
agreements with Botswana and Swaziland shows that Guernsey retains
a strong commitment to working with and sharing best practice with
SADC members and other developing economies."
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