Guernsey Economic Substance Requirements

The Guernsey Revenue Service introduced economic substance from 1 January 2019 as part of the islands commitment with the EU for tax transparency and alignment with Base Erosion and Profits Shifting ("BEPS") measures.

A key concern prior to the introduction of Economic substance was that Guernsey companies could be used to artificially attract profits here and that these profits would be out of step compared to the actual economic activity of the company in Guernsey.