The States of Guernsey wants your views on a range of possible corporation tax reform options.
The proposed options include increasing tax from 10% to 15% for certain financial firms – an option known as zero-15 – or introducing a flat levy of up to £500 a year on all registered companies.
The States is considering the options as an alternative to introducing a package of tax reforms based on a goods and sales tax – an option known as GST plus.
Deputy Charles Parkinson, Chair of the Tax Review Sub-committee, said he wanted to hear from members of the community as well as businesses and people working in the finance sector.
Deputy Gavin St Pier, Policy and Resources Vice President, said tax reform was “a complex subject” so it was important to get feedback on all the options “on the table”.
“The consultation document published today is part of our collective commitment to carry out our work in an open way, and both keeping the community informed and providing an option for people and organisations to contribute in a meaningful way,” he said.
What are the options being considered?
Option 1 – Full profits: Tax all profits of regulated firms
Any company that does regulated business would pay 10% tax on all its profits, not just the regulated part.
Option 2 – Sector extension: Tax more sectors the same way
More sectors like professional services, construction and retail would start paying corporate tax at 10% or 20%, instead of most profits being taxed at 0%.
Option 3 – Zero-15: Raise the 10% rate to 15%
Companies that currently pay 10% tax would pay 15% instead, while companies taxed at 0% or 20% would stay the same.
Option 4 – Territorial: Tax only Guernsey-based profits
Companies would pay tax only on profits made from activities carried out in Guernsey, at either 10% or 15%.
Option 5 – Levy: Flat fee per company
Every registered Guernsey company would pay a fixed annual charge (for example £250 or £500), regardless of how much profit it makes.
People can submit their views until 27 February by visiting https://www.gov.gg/taxreviewsubcommittee.
