Economic Development welcomes decision to narrow tax reform review

Wednesday 11 March 2026

The Committee for Economic Development has welcomed the decision by the Tax Review Sub-committee to remove territorial corporate tax from the list of options under consideration as part of the ongoing review of Guernsey's tax system.

The Committee considers that the decision reflects clear and consistent feedback from industry during the consultation process and provides greater certainty for businesses operating in the island.

Financial services remain the backbone of Guernsey's economy, supporting employment, public services and long-term economic stability. Maintaining confidence in the island's tax framework is therefore essential as Guernsey seeks to deliver sustainable economic growth and strengthen its position as a leading international finance centre.

The Committee believes consistency, security and predictability in policy are fundamental to Guernsey's economic success. Investors and businesses choose jurisdictions where the rules are clear, stable and well-governed, and protecting that reputation is vital not only for the financial services sector but for the wider community, which benefits from the economic activity and public revenues the sector generates. The Committee hopes this decision demonstrates that the States of Guernsey listens to industry and remains committed to maintaining a stable, secure and competitive environment for international business.

The Committee also notes that the recently published Finance Sector Growth Strategy 2035 places a strong emphasis on tax stability and policy clarity as key foundations for maintaining international confidence in Guernsey as a jurisdiction through which global capital can be responsibly managed and deployed.

Deputy Sasha Kazantseva-Miller, President of the Committee for Economic Development, said:

"The consultation process has provided clear and constructive feedback from industry. Narrowing the scope of the review reflects the outcomes of that engagement and helps provide the certainty that businesses and investors value. As we focus on delivering the Finance Sector Growth Strategy, maintaining confidence in Guernsey's economic framework and protecting our reputation as a stable and well-governed jurisdiction must remain central to our approach."

Deputy Andrew Niles, Vice-President of the Committee for Economic Development and the Committee's lead for the finance sector, said:

"Industry has spoken clearly through the consultation process about the importance of stability and predictability in our tax framework. Those qualities have been central to Guernsey's success for decades and remain one of our strongest competitive advantages.

"The Finance Sector Growth Strategy is focused on returning the sector to sustainable growth. Achieving that ambition requires confidence; and confidence depends on consistency, clarity and security in our policy environment."

The Committee will continue to work constructively with the Policy & Resources Committee and the Tax Review Sub-committee as the broader work on tax reform progresses ahead of consideration by the States later this year.