Guernsey to scrap income tax on international savings plans

International Adviser – 18 November 2020.

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The States of Guernsey will amend the Income Tax Law 1975 to state that any income paid from an international savings plan (ISP) is not subject to income tax on the island.
The island’s annual budget said that an ISP as a savings plan “aimed at benefitting employees of multinational and international companies”.

It added: “Such plans must have for their sole purpose the provision of benefits in respect of the persons; employment wholly outside Guernsey in a trade or undertaking. They must be established under the law of Guernsey and must also be administered by fiduciary licensees subject to regulation by the Guernsey Financial Services Commission (GFSC).”

The regulator added that, in order to amend income tax law, fiduciary licensees should be aware that a change to the definition of gratuity schemes will also be required.

We Are Guernsey, the financial services industry representative organisation in the island, explained that the move was a clarification of the law for ISPs, as previous guidance said Guernsey would not tax income from such savings plans.

Read the full article here.

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