In Guernsey, each individual is regarded as a taxable unit, except in the case of spouses living together where the income of the wife is regarded as belonging to the husband for tax purposes. If this is the case, the husband is ultimately responsible for the completion of tax returns and for the payment of income tax on his own and his spouse’s income.
Individuals principally resident in Guernsey are subject to tax on their worldwide income, subject to a cap of GBP110,000 tax on non-Guernsey source income, plus tax on Guernsey income at 20 percent, or alternatively GBP220,000 tax on worldwide income. Individuals who are resident but not principally resident are subject to tax on their worldwide income unless they elect to pay tax at 20 percent on their Guernsey-source income, subject to a GBP27,500 (minimum) charge. Non-resident individuals are liable to tax on Guernsey-sourced income, excluding bank interest.
The official currency of Guernsey is the British Pound (GBP).
Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.