Guernsey has announced that its income tax treaty with Monaco will enter into force on 9 May 2015. The treaty, signed 7 April 2014 in Guernsey and 14 April 2014 in Monaco, is the first of its kind between the two jurisdictions.
The treaty covers Guernsey income tax, and Monaco profit tax on commercial income of individuals and profit tax on companies.
The following capital gains derived by a resident of one Contracting Party may be taxed by the other Party:
Gains from the alienation of other property by a resident of a Contracting Party may only be taxed by that Party.
Both jurisdictions apply the credit method for the elimination of double taxation.
Article 23 (No Prejudicial or Restrictive Measures) includes the provision that neither Contracting Party may apply prejudicial or restrictive measures based on harmful tax practices to residents, non residents or nationals of either Party.
The article defines such measures as those applied by one Party to residents or nationals of either Party on the basis that the other Party does not engage in effective exchange of information and/or because it lack transparency in the operation of its laws, regulations or administrative practices, or on the basis of no or nominal taxes and one of the preceding criteria. Specific examples of measures include:
The treaty applies from 1 January 2016.
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