The Guernsey Revenue Service on June 17 announced proposed changes to the economic substance regulations for tax residency. The new rules will be effective in July if finalized.
The new rules further clarify legislation that requires companies tax resident in Guernsey that undertake specific activities to demonstrate that they have sufficient substance in Guernsey.
In a new circular, GSCCA Circular 111, the government states that exempt companies that are not regulated funds will be brought within the scope of Guernsey’s economic substance rules.
It also defines what the core generating activities are for companies that have income from different types of intellectual property. The definition of high-risk IP will be amended and other miscellaneous amendments are proposed.
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