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Guide

Economic substance requirements for Guernsey companies

[Dynamic date]

18 November 2019

Guernsey has implemented the Income Tax (Substance Requirements) (Implementation) Regulations, 2018 to address the concerns of the EU Code of Conduct Group that certain Guernsey companies could be used to artificially attract profits that are not commensurate with economic activities and substantial economic presence in Guernsey.

This guide considers the key aspects of economic substance requirements for Guernsey companies, the questions that should be considered to determine whether the substance test applies to a company and whether that test will be met.