Guernsey will retain 0% corporate tax rate

05.12.2011 Guernsey - one of the Normand Islands that are under the jurisdiction of the United Kingdom has recently confirmed the application of 0% corporate tax rate within its territory. Guernsey officials made this declaration after submitted by the European Union review of taxation on the island in 2012. The EU considered the island's tax regime on the issue of compliance with the Code of the EU on the taxation and business, and eventually gave a positive assessment.
Guernsey officials believe that the tax mechanism shouldn’t be changed because it’s irrational: for several years thanks to favorable tax climate the island has involved large financial flows. Guernsey at the moment has a significant competitiveness among other jurisdictions with an attractive tax regime.

Expert’s opinion

“A great advantage of the state domestic politics is the ability to ensure the functioning of various economic, administrative and other institutions of the country without change of tax mechanisms, the tax burden increase. Guernsey continues to be competitive with other jurisdictions with favorable tax regimes - that has a positive effect on foreign investment attraction”.

On the basis: www.tax-news.com

Andrianova Irina ( the lawyer of international consulting department of Honest&Bright)