11. After section 66(1) insert the following subsection -. (i) where the income from which the distribution was made has been taxed or is taxable at the company standard rate, the individual standard rate, (ii) where the income from which the distribution was made has been taxed or is taxable at the company intermediate rate, or where section 62A(6) applies, a rate equivalent to the difference between the company intermediate rate and the individual standard rate, and. Within the Annual Budget it is proposed to make a change in respect of Gratuity Schemes and their treatment under section 40(nn) of the Income Tax (Guernsey) Law, 1975. Deemed distribution of company profits and income. "Collection of tax on disregarded individual income and disregarded company income. The independent broker conditions are met in relation to a transaction carried out on behalf of a non-resident company or individual by a broker in Guernsey if the following conditions are met -. (a) it was advanced at the company's normal commercial rate, and the company is authorised by the Guernsey Financial Services Commission, or by any person or body exercising, in a place outside the Bailiwick, functions corresponding to the functions of the Commission, to carry on a business which includes the lending of money. After section 68 of the Law of 1975 insert the following section -. The authoritative text of the enactment and of the amending instruments may be obtained from Her Majesty's Greffier, Royal Court House, Guernsey, GY1 2PB. (a) for the heading substitute "Offences relating to ETI certificates and deductions at source. "Income falling within paragraphs (i) or (ii) shall be "disregarded partnership income".". (d) immediately prior to the date of the migration of a company registered in Guernsey pursuant to the Migration of Companies Ordinance, 1997[n], there shall be deemed to have been distributed to each beneficial member an amount of the company's undistributed income equivalent to the amount which would have been payable to him had the company distributed all that income at that time. Ordres en Conseil Vol. (1) For the purpose of this Law, where the person ("Person A") to whom the distribution has actually been made is -, (a) resident in Guernsey, the distribution shall be deemed to have been made to the beneficial member unless Person A requests that it be deemed to have been made to them, or. In section 201A of the Law of 1975[r] -. In section 53(1) of the Law of 1975 for the words "standard rate" substitute "appropriate rate (as if it were income of the person beneficially entitled to that income)". After section 6(3A) of the Law of 1975 insert the following subsection -, "(3B) Notwithstanding the provisions of subsection (3) -, (a) the deemed cessation of trading at midnight on 31 December 2007 does not prevent the company from carrying forward losses available at that date for the purpose of being set-off, in accordance with the provisions of this Law, against profits or income arising in subsequent years, and, (i) the proviso in subsection (2) shall apply as if the words from and including "except the year of charge in which the business is commenced" to the end of the subsection were omitted, and. (1) For the purposes of this Chapter a person is regarded as carrying out a transaction on behalf of another if the person -, (a) undertakes the transaction, whether on behalf of or to the account of the other, or. The States of Guernsey Annual Budget was published on Monday 16 November 2020 and can be found here. XXIX, p. 214; Vol. Please see our general guide to Guernsey income tax [258kb] for more information. (9) Any tax paid by a company on a qualifying loan in accordance with this section shall be payable by the company in such manner and at such times as may be prescribed by or under regulations made under subsection (7). on non-Guernsey income. (a) "share" includes stock, any interest of a capital nature and the capital interest of a member in a company limited by guarantee, (b) an "equitable interest" includes an interest which arises under a trust, or which may in future arise under a trust as a result of -. (b) any company or other entity is held by, vested in or otherwise under the control (direct or indirect) of the trustees of a settlement for the purposes of the settlement. 5. After section 62 of the Law of 1975 insert the following sections -. (b) activities in Guernsey regulated by the Office of the Director General of Utility Regulation. 1 GR174625.1 1. (3) In section 209(2) of the Law of 1975 before "amended" insert "from time to time". The original section 204 was repealed by the Income Tax (Zero 10) (Guernsey) Law, 2007. This Law amends the Income Tax (Guernsey) Law, 1975, as amended [f] ("the Law of 1975"). "distribution" has the meaning assigned to it in section 62AA. (e) disregarded deemed income (see section 47E). Person to whom the distribution is made for the purposes of this Law. VII of 2006. (a) for "paragraphs (b) and (d) of subsection (1) of this section, dividends" substitute "paragraph (b) of subsection (1) of this section, distributions", (b) in paragraphs (a) and (b) the words "or company" are repealed, and, (c) after paragraph (b) insert the following text -. A 10% rate of corporation tax is applicable to income arising from certain regulated activities including banking and insurance. 25. XXXIII). An electronic version of the original enactment is available - Income Tax (Guernsey) Law, 1975. (ii) any loan creditor of the company, (iii) any person who possesses, or is entitled to acquire, a right to receive or participate in distributions of the company or any amounts payable by the company (in cash or in kind) to loan creditors by means of premium on redemption, and. (c) for "or under regulations made under subsection (4) of that section" substitute "that section or by regulations thereunder". Limit on liability to income tax of non-resident individuals. Sections 164 to 168A of the Law of 1975 are repealed. 46. 47. (i) the exercise of a power or discretion by the trustees or other persons in accordance with the terms of the trust (whether or not with the consent of another), (c) without limitation, a person has a "contractual interest" where, under an agreement or arrangement -. (a) a deemed distribution within the meaning of Chapter VIIIA, and, (b) a qualifying loan within the meaning of Chapter XII, and. IV of 2000; No's. (b) has not been assessed but which is later assessed, and on which tax has not been paid by the reporting date of the calendar quarter after the quarter in which the liability to tax arose, shall be deemed to be undistributed income for the purposes of this Chapter on that reporting date ("the operative date"). (3) For the avoidance of doubt, surcharges and additional surcharges shall cease to accrue in respect of tax on income which is deemed to be distributed, and is taxed accordingly, under this section. V of 1996. "or (3) arising from the provision or making available of credit facilities.". In section 57 of the Law of 1975 -, (a) for the word "dividend" substitute "distribution", and. PART 1 PRELIMINARY 1 Charge of income tax. 7. 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