In addition, Guernsey has partial double taxation conventions in place: double taxation agreements are agreements between governments that determine how personal and corporate income and profits are taxed, in order to prevent a person or company from being taxed twice without a loophole for tax evasion. The introduction of the new treaties aims to improve international cooperation in tax matters. On Monday, representatives of the government of Jersey, Guernsey and the Isle of Man signed the new agreements that significantly enhance and modernize Crown Dependencies` DTAs with the United Kingdom. These DBAs are in line with the new international tax standards, which are broadly in line with the OECD Standard Tax Convention, and include various erosion and profit-shifting (BEPS) measures. The new treaties now all contain a non-discrimination clause (Article 24) and should in principle be considered “complete contracting countries” for the future of British taxpayers. Multinational companies should therefore consider the consequences of this change with respect to double taxation of theft assistance rights, the application of the right to vote to branch exemption, and the impending offshore revenues for intangible real estate law. Crown dependencies sign a new double taxation agreement with the UK has been backed up If you need more information about the new DTAs between the UK and the Crown Dependencies, talk to your usual tencart contact or to the Dixcart office in Guernsey: firstname.lastname@example.org or on the Isle of Man: email@example.com. “While the previous double taxation agreement with the United Kingdom has served both sides well for more than 60 years, it was important to negotiate a new agreement reflecting changes in international taxation since the 1950s and the island`s obligation to comply with international tax standards, including the most recent BEPS standards, established by the OECD.” The agreement explicitly excludes interest on dividends and bonds from its provisions. Guernsey also signed a tax and information agreement (TIEA) with the United Kingdom and agreed to amend the provisions of the 1952 agreement to add provisions relating to the taxation of pension income and a mutual agreement procedure.
Guernsey and the United Kingdom generally apply the credit method to eliminate double taxation, although the United Kingdom exempts dividends paid to a UK-based company if the exemption conditions are met under UK law. The exemption may also apply to the profits of a British company if the exemption conditions under UK law are met. Previously, Guernsey did not generally enter into tax treaties as a matter of policy. However, on 12 March 2012, the island signed a double taxation agreement with Malta.