Following the lead of the Isle of Man earlier this year and Jersey in mid-November, Guernsey has revealed plans to reduce general corporate tax to 0%. From 2008 there will be a 0% rate for companies with a 10% rate for financial services businesses including banks and insurance companies. The exempt company and international company status will be abolished from the same date after which companies qualifying for these will go under the 0% or 10% rate. There have been no announcements on measures to address any possible shortfall in tax revenues resulting from the abolition of taxes but personal tax rates will remain at 20% and VAT will not be introduced.
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