Your AI accountant for Guernsey.

Corporate Income Tax (Guernsey)

Guernsey operates a 0% corporate income tax rate for the vast majority of companies. Standard trading companies pay zero corporation tax on profits. Only specific regulated sectors face a 10% rate: banking businesses, domestic insurance licensees, insurance managers/intermediaries, fiduciaries, and fund administrators. The 0% rate is one of Guernsey's primary commercial attractions and applies regardless of the company's level of profit.

Personal Income Tax (Guernsey)

Guernsey taxes individuals resident in the island at a flat rate of 20% on worldwide income. There is no higher rate band, no capital gains tax, and no inheritance tax in Guernsey. Residents benefit from various personal allowances and reliefs that reduce the effective rate. Non-residents are taxed only on Guernsey-sourced income.

Document Duty (Guernsey)

Document Duty is Guernsey's equivalent of stamp duty. It is charged on instruments effecting the transfer of property situated in Guernsey, including real property, shares in property-owning companies, and certain other transactions. Rates range from 0% to 2.5% depending on the type of transaction and the consideration paid.

States of Guernsey Revenue Service

The States of Guernsey Revenue Service (commonly called the Revenue Service or the States Revenue Service) is the government body responsible for administering income tax, document duty, and social insurance contributions in Guernsey. It is the equivalent of HMRC in the UK or the IRS in the US. It issues assessments, collects payments, and enforces compliance.

Exempt Company (Guernsey)

A Guernsey Exempt Company is a company incorporated in Guernsey that holds an exemption from corporate income tax granted by the Revenue Service. Historically used for offshore structures, the formal exempt company regime was largely superseded by the zero-10 regime (which made 0% the standard rate). Today it primarily means a company with non-resident shareholders that pays an annual fee and is confirmed exempt from tax on income derived outside Guernsey.

Principal Company (Guernsey)

A Principal Company in Guernsey's insurance context refers to an insurer licensed in Guernsey that is the primary insured entity, often used in captive insurance structures. More broadly, 'principal' in Guernsey trust and company law refers to the ultimate beneficiary or controlling party behind a structure. In tax terms, the principal company concept is relevant in controlled and affiliated company rules.

Yes — office rent, co-working memberships and business premises costs are fully deductible against Guernsey corporate income tax as ordinary business expenses. The cost must be wholly and exclusively incurred for the purposes of the trade.

Yes — fees paid to accountants, lawyers, company secretaries, registered agents and business consultants are deductible provided they relate to the company's trading activities, not capital transactions or personal matters.

Yes — salaries and wages paid to employees are fully deductible against Guernsey corporate income tax. The company must operate the ETI (Employees Tax and Insurance) PAYE system, deducting income tax and social insurance from gross pay and remitting to the Revenue Service monthly.

Yes — travel and accommodation costs incurred wholly and exclusively for business purposes are deductible. Guernsey has no approved mileage rates equivalent to HMRC's advisory rates; the actual cost basis is used. There is no VAT on Guernsey fuel to reclaim.

Partially — vehicle costs used exclusively for business are fully deductible. Mixed personal/business use requires an apportionment. Guernsey has no HMRC-style approved mileage allowance payment scheme; actual costs are used. There is no fuel benefit charge system equivalent to the UK.

Yes — software subscriptions (SaaS tools, cloud services, accounting software, business applications) are fully deductible as revenue expenditure. There is no VAT in Guernsey so the full subscription cost is the deductible amount with no input tax to recover.