Abolition of Retention Tax
The move to full automatic exchange of information was passed by the States of Deliberation on 24 November 2010.
This change can be implemented by Paying Agents with effect from 1 January 2011 but must occur no later than 30 June 2011. After that date, no further retention tax should be deducted from interest payments. Instead, information should be provided to the Director by Paying Agents in respect of all relevant interest payments.
A return form will be issued to each Paying Agent in July 2011, for completion and return to the Director of Income Tax, together with the payment of the retention tax, by 30 September 2011 (being 3 months after 30 June 2011).
Further information can be found in the letter from the Minister, Treasury & Resources Department, to the Chief Minister, dated 7 September 2010, contained in Billet d'Etat XXIII of 2010 States Report (September 2010) : Abolition of Retention Tax [24kb]. The full Billet can be accessed here.
The Director (Income Tax)(Opening Hours - 8.30am to 4.00pm Mon- Fri) , Income Tax Office, PO Box 37, 2 Cornet Street, St Peter Port, GY1 3AZ, Guernsey
Tel: +44 1481 724711 Fax: +44 1481 713911