Guernsey – Revised Rules Allow Tax Exemption for Certain Seconded Academics

Guernsey – Revised Rules Allow Tax Exemption

This GMS Flash Alert reports that an update to Guernsey’s tax legislation has been issued enabling professors, lecturers, teachers, and researchers to come on secondment to Guernsey and pay no Guernsey income tax for up to two years.

Related content


An update to Guernsey’s tax legislation1 has been issued enabling professors, lecturers, teachers, and researchers to come on secondment to Guernsey and pay no Guernsey income tax for up to two years.


Residents of Guernsey are broadly subject to Guernsey income tax on their worldwide income at a flat rate of 20 percent.  This can make it an attractive destination for residents in jurisdictions – such as the U.K. – which levy higher rates of income tax.  The income tax-free period (of up to two years) provided for in the revised Statement of Practice may make Guernsey a more attractive assignment location and could reduce employment-related costs for organizations in respect of their professors, lecturers, teachers, and researchers working in Guernsey.   

Purpose of Legislative Update

This purpose of this legislative update is to attempt to counteract some of the main factors that may hamper Guernsey’s effectiveness in recruiting the education professionals that the island needs.  It is also intended to encourage those individuals who work in the academic/research profession to come to Guernsey on secondment as they will potentially benefit from being exempt from Guernsey income tax.


Normally, any remuneration of employees carrying out duties in Guernsey would be taxable and subject to the deduction of Guernsey income tax under the Employee Tax Instalment Scheme.  The remuneration of an employee seconded to Guernsey may be treated as exempt from Guernsey income tax if all of the following conditions apply:

  • The secondee is in Guernsey for a maximum of 90 days during the Year of Charge;
  • The secondee continues to be paid by the overseas employer;
  • The costs of remunerating the secondee are not allowable to the Guernsey employer.

Recent Legislative Update for Secondees Who Are Professors, Lecturers, Teachers, and Researchers

With effect from 1 January 2014, legislation has been updated, manifest in a revised Statement of Practice E40, providing that the remuneration of professors, lecturers, teachers, and researchers, who come to Guernsey to work, will be exempt from Guernsey income tax if they meet the following conditions:

  • The individual is present in Guernsey for a period not exceeding two years for the purpose of teaching;
  • The individual is, or immediately before the temporary visit was, a resident of another jurisdiction;
  • The remuneration arises from overseas sources.


1  Statement of Practice (revised) E40 Employees on Secondment (section 8), published on 26 August 2015.


For further information or assistance, please contact your local GMS or People Services professional, or one of the following professionals with the KPMG International member firm in Guernsey:


Alison Hill

Tel. +44 (0) 1481 741856


Imogen Oldfield

Tel. +44 (0) 1481 755762

The information contained in this newsletter was submitted by the KPMG International member firm in the Channel Islands.

© 2016 KPMG Limited, a company incorporated under the Guernsey Companies Act and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform