Guidance on aspects in relation to the economic substance requirements as issued by Guernsey, Isle of Man and Jersey

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A second piece of guidance on aspects in relation to economic substance requirements has been jointly issued by the Crown Dependencies. This document provides additional guidance on the scope and application of the economic substance legislation.

This guidance is being published now, to enable industry to engage and provide feedback, however is to be treated as a work in progress recognising that further technical aspects will develop through further discussions with the Organisation for Economic Co-operation and Development Forum on Harmful Tax Practices and the European Union Code of Conduct Group on Business Taxation.

The tax administrations from the Crown Dependencies will continue to work together to further develop this guidance which will be updated periodically, and will be complemented by Island specific guidance.
The guidance is principles based and therefore, cannot cover specific scenarios and will not replace the need to take independent professional advice.

Whilst the terms used within each Island’s legislation may differ slightly, the text of this joint document is drafted in a generic manner so as to explain the scope and application of the legislation as it will be across all three Islands.
This document should be read in conjunction with the jointly issued document Key aspects in relation to economic substance requirements and the legislation applicable in each Island, which can be found at:

Jersey Taxation (Companies-Economic Substance) Law 2019

Isle of Man isle-of-man-legislation-income-tax-substance-requirements-order-2018.pdf


Any comments should be directed to the respective tax administrations in Guernsey, the Isle of Man or Jersey.

Read the full guidance document here


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