An amending protocol to the 2013 income tax treaty between Guernsey and the Isle of Man was signed on 18 October 2019 by the Isle of Man and on 12 November 2019 by Guernsey. The protocol is the first to amend the treaty and includes the following changes:

• The Preamble is updated in line with OECD BEPS standards;
• Article 3 (General Definitions) is amended with the definition of the term "competent authority" updated to mean:
  • in the case of the Isle of Man, the Assessor of Income Tax or his or her delegate; and
  • in the case of Guernsey, the Director of the Revenue Service or his or her delegate;
• Article 20 (Other Income) is updated with the insertion of a new paragraph 2 regarding the treatment of income paid to a resident of a Contracting Party out of income received by trustees, or by personal representatives administering the estates of deceased persons;
• Article 23 (Mutual Agreement Procedure) is updated to provide that a MAP case may be submitted to the competent authority of either Contracting Party (originally a resident of a Contracting Party may only submit to the competent authority of that Party);
• Article 25A (Entitlement to Benefits) is added, which provides that a benefit under the treaty shall not be granted in respect of an item of income or capital if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the treaty.

The protocol will enter into force thirty days after the ratification instruments are exchanged and will apply from that date.