Monday 13 May 2013
Agreement with major EU finance centre signed alongside further agreements with developing economies
Guernsey's Treasury Minister Deputy Gavin St Pier has signed Guernsey's bilateral Double Taxation Agreement (DTA) with Luxembourg - Guernsey's seventh DTA since the beginning of 2012.The signing took place in London, with Luxembourg's Chargé d'Affaires to the UK, Ms Béatrice Kirsch.
Deputy 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."
Director of Income Tax, Rob Gray commented:
"This DTA will create a mechanism for alleviating double taxation and exchanging tax information with Luxembourg relating to both corporate and personal incomes. It also means that Guernsey's network of agreements continues to cover the majority of EU Member States and G20 countries."
In addition to agreements with major international finance centres such as Luxembourg, Guernsey is also continuing to conclude tax information exchange agreements with developing economies in order to assist them in protecting their tax revenue.
While in London Deputy St Pier also signed a Tax Information Exchange Agreement (TIEA) with Botswana at the Botswanan High Commission, and a further TIEA - Guernsey's 43rd - with Swaziland will shortly be concluded.
Deputy St Pier commented:
"Guernsey's tax team has built strong relationships with Southern African Development Community countries, including Botswana and Swaziland, over the past couple of years. The OECD's Global Forum has emphasised the importance of working with developing countries to share expertise on tax information exchange, thereby helping them to protect their tax revenues."
Director of Income Tax, Rob Gray commented:
"In October 2011, Ron van der Merwe, the Chair of the Tax Agreements Working Group of the SADC, said that the negotiation of tax agreements between SADC Member States and Guernsey was 'a major step forward in creating the basis for exchange of information for SADC members'. The conclusion of agreements with Botswana and Swaziland shows that Guernsey retains a strong commitment to working with and sharing best practice with SADC members and other developing economies."
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