COVID-19 Implications For Economic Substance In Guernsey

The continued deployment of government measures to prevent the spread of COVID-19 and protect people's health are having an impact on how companies continue to meet their economic substance requirements. Concerns have arisen that measures, such as restrictions on travel and voluntary/mandatory self-isolation, could cause difficulties for companies required to comply with economic substance requirements in Guernsey.

Under Guernsey economic substance legislation, certain companies that are either tax resident in Guernsey (or would be so resident but have exempt status) must comply with economic substance. Companies that are tax resident in Guernsey include companies that are registered, or centrally managed and controlled, in the Island.