The governments of Guernsey, Isle of Man, and Jersey on April 26 jointly published draft tax guidance on economic substance.
The guidance aims to explain the scope and application of legislation approved by the parliaments of the three Crown Dependencies in December 2018.
The legislation and guidance applies to companies that are tax resident on the islands and that are in the following sectors: banking, insurance, shipping, fund management (not including collective investment vehicles), finance and leasing, headquartering, distribution and service centers, operation of a holding company, holding intangible property (intellectual property).
All companies with activities and income these sectors must demonstrate that they have adequate substance in the country and must meet reporting requirements.
An earlier document, Key aspects in relation to economic substance requirements, was jointly issued by Guernsey, Isle of Man and Jersey in December.
Be the first to comment