Tax
Guernsey Expands List Of DTA, Tax Information Exchange Deals With Brazil, Singapore Pacts
Guernsey has signed a double taxation treaty with Singapore and a tax information exchange agreement with Brazil, as international financial centres across the globe continue to adjust to demands for more transparency over financial affairs.
Peter Harwood, Guernsey’s chief minister, signed the agreements on behalf of the island’s government during meetings in London.
“For several years we have been raising awareness of Guernsey in the Far East, including Singapore. We have built a good understanding with both the Singapore Stock Exchange and the local regulator, the Monetary Authority of Singapore, and now several Guernsey firms, such as Collas Crill and International Administration Group, have established operations in Singapore,” Fiona Le Poidevin, chief executive of Guernsey Finance, the promotional agency for the island’s financial sector, said.
“The DTA means that individuals or companies with ‘home’ as one jurisdiction but with interests in the other jurisdiction will not be taxed by both sets of authorities on the same income. This clarity and certainty on matters of taxation makes it more attractive to conduct business between the two jurisdictions,” she continued.
“In addition, the DTA will provide increased possibilities for the expansion of Guernsey’s financial services business, not just with Singapore but also other jurisdictions,” she said.
As for Brazil, she said: “The economic growth in South America means that there is huge potential for Guernsey’s finance industry to attract business from both high net worth individuals and expanding companies in the region, especially in the more developed countries such as Brazil. Some Guernsey-based firms are already leading the charge in this direction but there are obstacles to overcome for the opportunities to be fully realised. The TIEA is an indication of the growing relationship between Guernsey and Brazil and a significant step in enhancing the potential for further business flows between the two jurisdictions.”
Additionally, Guernsey has also signed a TIEA with Mauritius.
The latest moves mean Guernsey has signed 15 DTAs, including 5 full DTAs and 10 "partial" DTAs, as well as 40 TIEAs, including with 16 members of the G20.
