Guernsey satisfies EU business substance requirements

Posted: 13/03/2019

Dominic WheatleyGuernsey’s global competitiveness as a finance sector has been further enhanced following confirmation from the EU Council’s Code of Conduct Group and the European Council of Finance Ministers (ECOFIN) that the island has satisfied its legal substance requirements for entities operating in or through the jurisdiction. 

The Code Group’s findings were formally approved at the ECOFIN meeting in Brussels on 12 March.

Guernsey’s government consulted with industry to clarify legislative and reporting requirements to meet the Code Group’s standards, working closely with Jersey and the Isle of Man, and the EU Commission.

The island's approach is proportionate, and requires companies that are tax resident in Guernsey and undertaking specific activities to demonstrate that they have sufficient substance in the island. 

The positive confirmation was to be expected, said Guernsey Finance Chief Executive Dominic Wheatley (pictured). “Guernsey has a history of more than 50 years as a specialist global finance centre and we were confident that we would be seen to be a jurisdiction of true substance,” he said. 

“This is a real endorsement of Guernsey as a co-operative jurisdiction and further indication of our ongoing commitment to meeting international standards.

“In meeting those standards we are able to provide the certainty, stability and competitiveness that our clients demand. The commitment to being a mainstream competitive jurisdiction is at the heart of our offer.
“Our government has engaged actively on this issue in a short time frame, and industry has recognised the importance of this issue and engaged accordingly.”

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