15 March 2019

Guernsey publishes new corporate residence forms for tax filings

Amendments to Guernsey's corporate residence test, which came into effect on 1 January 2019, have now been followed by the publication by its Revenue Service of new forms and guidance on the process for notifying changes to the corporate residence of companies.

Amendments to Guernsey's corporate residence test, which came into effect on 1 January 2019, have now been followed by the publication by its Revenue Service of new forms and guidance on the process for notifying changes to the corporate residence of companies. 

With effect from 1 January 2019, a company will be treated as tax resident in Guernsey in a year of charge if:

  • it is controlled in Guernsey, or is centrally managed and controlled in Guernsey, in that year of charge, or
  • it is incorporated in Guernsey and has not been granted an exemption from tax for that year of charge.

However, in certain circumstances, a company will not be treated as resident in Guernsey in a year of charge, even if it is incorporated or controlled in Guernsey.  This may be the case where the company is tax resident in another territory from where its business is centrally managed and controlled and it meets other requirements.

The Revenue Service has now published a circular setting out the process for notifying the Revenue Service of changes to a company's jurisdiction of residence based on the new corporate resident test.  This has been accompanied by the publication of a new form for the Registration of a Foreign Incorporated Company as Tax Resident in Guernsey as well as a new form to be completed where a company wishes to request confirmation of its status as non-tax resident in Guernsey.  These publications can be accessed through the following links:

Carey Olsen counsel Laila Arstall said: "The publication of these forms and guidance follows on from the changes to legislation made at the end of last year.  By offering the facility for eligible companies to obtain confirmation of their residence status, the Revenue Service recognise that such confirmation will be of assistance to the ongoing administration and management of companies affected by the recent changes to the corporate residence test in Guernsey, and is to be welcomed.  In the meantime, we await the publication of the new, enhanced company tax return which is being designed to incorporate aspects of Guernsey's new substance requirements for companies that carry on geographically mobile financial and other service activities." 

For further information on Guernsey's new substance requirements and related changes to corporate tax residence rules, please refer to the following Carey Olsen briefings: