The most common form of business vehicle is the limited company. Jersey and Guernsey have their own company laws. Although all companies formed in one of these Islands are subject to the general company law applying in that Island, there is an important distinction in terms of tax treatment.
Companies incorporated in both Jersey and Guernsey are capable of being taxed in one of three ways:
- as an ordinary resident company subject to local income tax at the standard 20% rate;
- as an international company and subject to tax in Jersey at set rates varying between 0.5% and 2% on international income and at 30% on local income and in Guernsey at an agreed rate somewhere above 0% but not more than 30%;
