Guernsey International Company (IC):

The International Company (IC) form was introduced by the Income Tax (International Bodies) (Guernsey) Law 1993 and applies to 'bodies of persons' whether or not incorporated. The IC must be taxable in Guernsey either through residence or a business presence on the island, must not trade with Guernsey residents (except other ICs), must be wholly owned by non-residents or other ICs, and must never have been a bank, insurer or exempt company.

Prior to granting IC status, the Administrator requires extensive information, and usually needs to discuss the applicant's existing or intended business. An appropriate taxation rate can then be negotiated between nil and 30%, allowing the IC to obtain double taxation treaty or withholding tax benefits in other countries.

IC status and the agreed taxation rate are granted for up to 5 years, and are then subject to review. ICs are typically used for group financing operations, captive insurance companies, industrial and commercial activities and overseas investment companies. Exempt companies, banks and some insurers do not qualify for IC status.

Version date: 07.05.06