Guernsey has signed a double taxation arrangement (DTA) with Luxembourg.
Gavin St Pier, Guernsey’s treasury and resources minister, signed the bilateral DTA with Luxembourg of 10 May with Luxembourg’s Chargé d’Affaires to the UK, Béatrice Kirsch.
St Pier said: “This is an important further component in Guernsey’s network of tax agreements. Following on so closely from the signing of our DTA with Hong Kong, it is further demonstration of Guernsey meeting the highest global standards of international tax co-operation.”
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “There is already a strong link between Guernsey and Luxembourg in relation to financial services business and this is particularly the case with investment funds, where many platforms will have structures in both jurisdictions.”
“The DTA means that individuals or companies with ‘home’ as one jurisdiction but with interests in the other jurisdiction will have mechanisms in place to prevent them from being taxed by both sets of authorities on the same income.”
The latest signing means that Guernsey has now signed full DTAs with eight jurisdictions. It most recently signed arrangements with Malta, the Isle of Man, Jersey, Qatar and Singapore.
St Pier also signed a tax information exchange agreement (TIEA) with Botswana at the Botswanan High Commission. A further TIEA with Swaziland is expected to be concluded in the near future.
