Consultation set on 10% or 15% corporate tax rates
BBCThe man leading a review of how much tax Guernsey receives from businesses says islanders are to be asked their views on the introduction of a 10% or 15% rate of corporate tax.
Deputy Charles Parkinson said the consultation into taxes was set to begin on Friday.
The tax review sub-committee, which he leads, is set to return to the States with full proposals for tax reform before the end of June, including whether to introduce a goods and services tax (GST).
The States is set to make a decision on GST next month, which could see a 5% rate to include food, or a 6% rate if food is excluded.
Policy and Resources (P&R) member Parkinson has been a long-time critic of the island's current corporate tax regime and came third at 2025's general election.
Since 2008, most companies in Guernsey have paid no tax on their profits, while certain finance businesses have been taxed at 10%, under a regime known as 0/10.
Parkinson attempted to change the island's corporate tax regime in 2023, but failed.
outgoing Chief Minister Lyndon Trott warned the States against making changes to corporate tax without moving in line with other jurisdictions like Jersey and the Isle of Man.
The island's business representative groups, like the Guernsey International Business Association, have consistently argued against changing corporate tax.
Delivering tax reform has been proposed as one of the States' "super priorities" for this term, as part of P&R's government work plan.
Who is working on plans to reform corporate tax?
The tax review sub-committee was created by P&R and consists of:
- Deputy Charles Parkinson (chair)
- Deputy Gavin St Pier
- Bill Dodwell
- Mike Williams
- Peter Harris
- Tony Mancini
It is considering how companies are taxed and whether a system of territorial corporate tax should be implemented.
Alongside that, it is reviewing a package that was agreed by States members in November 2024 that included plans for a 5% GST, which could now become the 6% GST option instead, a lower income tax rate for earnings under £32,400, an increase to income tax allowances, and a restructuring of social security contributions.
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