FAQs
General FAQs
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Should I run my business through a company or as a sole trader?
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Do I pay tax on dividends paid out of my company?
Yes Guernsey trading companies pay a 0% rate of tax on their trading profits but once they are paid out as dividends then the company is required to pay the net dividend to the shareholder and pay the 20% tax element over to the Revenue Service. This is done via a distribution reporter system which we can submit for you. You need to prepare dividend vouchers which are given to the shareholders and which they submit with their personal tax returns, along with an application for credit for tax paid.
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Do non resident shareholders pay tax on dividends?
No dividends paid from a Guernsey company to non-resident shareholders are paid gross with no tax withheld.
