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Guernsey and U.S. tax agreements

Guernsey does not appear in the IRS treaty list, but it does appear in the Treasury FATCA table.

Guernsey in the federal lists

The IRS A to Z list does not include Guernsey among the jurisdictions it names for U.S. income tax treaties. The IRS notes that the United States has treaties with a number of foreign countries and links to the treaties for particular countries.[3]

Treasury's FATCA table lists Guernsey with status In Force (8-26-2015) and agreement type Model 1.[2]

What the IRS says a tax treaty does

The IRS describes treaties as arrangements that can change tax on specified income for residents or citizens in the countries involved. For income from U.S. sources, residents of foreign countries may receive a reduced U.S. rate or an exemption on certain income items. The IRS says the rates and exemptions differ by country and by income item.[3]

The IRS states that where a treaty does not cover an income type, or where no treaty exists between the country and the United States, income is taxed in the same way and at the same rates shown in instructions for the applicable U.S. return.[3]

What an IGA means in the FATCA table

Treasury's FATCA page says foreign financial institutions report to the IRS information about accounts held by U.S. taxpayers, or foreign entities where U.S. taxpayers have a substantial ownership interest. It says institutions may comply through FATCA regulations and an FFI agreement, if applicable, or through FATCA intergovernmental agreements treated as in effect in their jurisdictions.[2]

In this context, an IGA is the intergovernmental agreement route that Treasury identifies for FATCA compliance, separate from an income tax treaty.[2]

Reading the two lists together

The IRS treaty list addresses income tax treaties, while Treasury's table records FATCA agreement status by jurisdiction. For Guernsey, the IRS A to Z list does not name it, while the Treasury table does list it as Model 1 and in force.[2][3]

Key points

A Model 1 FATCA agreement can route U.S.-related account information from financial institutions to the local tax authority, which exchanges it with the IRS under the agreement.[9]

FATCA reporting can cover information about accounts held by U.S. taxpayers and foreign entities in which U.S. taxpayers have a significant interest.[10]

Relevance for U.S. citizens

FATCA information exchange and U.S. taxpayer reporting are separate parts of the transparency framework. The IRS describes reporting by foreign financial institutions, while certain U.S. taxpayers also report specified foreign financial assets to the IRS.[11]

Related reading

Guernsey trusts and U.S. reporting rules covers U.S. reporting rules for foreign trusts. Guernsey reporting and U.S. foreign trust forms covers related reporting frameworks. Guernsey trust and fiduciary regulation provides context on Guernsey's trust and fiduciary regulation.

Questions and answers

Does the IRS list Guernsey as a U.S. income tax treaty jurisdiction?

Guernsey does not appear among the jurisdictions named in the IRS A to Z treaty list.

What status does Treasury show for Guernsey under FATCA?

Treasury lists Guernsey as In Force (8-26-2015) and identifies its IGA as Model 1.[2]

What does the IRS say a tax treaty can do?

The IRS says treaty terms may reduce or exempt tax on certain income items, depending on the country and kind of income. It describes effects for foreign residents with U.S. source income and U.S. residents or citizens with foreign source income.[3]

What is the FATCA IGA route described by Treasury?

Treasury says foreign financial institutions may comply through FATCA regulations and an FFI agreement, if applicable, or through FATCA intergovernmental agreements treated as in effect in their jurisdictions. Its table identifies Guernsey's agreement type as Model 1.[2]

Related glossary terms

  • Treaty rate table: A treaty rate table summarizes income categories and tax rates or exemptions under U.S. income tax treaties. The IRS explains the tables' scope and limits.
  • FATCA: FATCA requires certain U.S. taxpayers to report foreign assets and financial institutions to report accounts to the IRS. Form 8938 may apply at thresholds.
  • Tax residence: Tax residence describes a person's status in a country for tax purposes. Treaty texts address how it affects income items and applicable treaty requirements.

Related articles and guides

  • Hong Kong tax treaty and FATCA status: The IRS treaty list does not include Hong Kong among countries with U.S. income tax treaties. Treasury's FATCA table identifies its agreement as Model 2.
  • Isle of Man treaty and FATCA position: The IRS treaty list does not include the Isle of Man, while Treasury lists it as In Force under FATCA Model 1. The two lists cover different subjects.

Tools and official documents

  • FATCA agreement lookup: Look up any jurisdiction in the U.S. Treasury FATCA table and see its agreement model and status as the Treasury lists them, with a link to the source.
Sources and data notes
  1. States of Guernsey Revenue Service, IGOR XML Reporting Guide. https://igor.gov.gg/about/schemaguide. Retrieved .
  2. U.S. Department of the Treasury, Foreign Account Tax Compliance Act: agreements and understandings by jurisdiction. https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act. Retrieved .
  3. Internal Revenue Service, United States income tax treaties, A to Z. https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z. Retrieved .
  4. Internal Revenue Service, Foreign trust reporting requirements and tax consequences. https://www.irs.gov/businesses/international-businesses/foreign-trust-reporting-requirements-and-tax-consequences. Retrieved .
  5. Internal Revenue Service, Instructions for Form 3520. https://www.irs.gov/instructions/i3520. Retrieved .
  6. OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, Global Forum on Transparency and Exchange of Information for Tax Purposes: Guernsey 2018 (Second Round). https://www.oecd.org/content/dam/oecd/en/publications/reports/2018/07/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-guernsey-2018-second-round_g1g909c5/9789264302730-en.pdf. Retrieved .
  7. OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Guernsey 2011 (EN). https://www.oecd.org/content/dam/oecd/en/publications/reports/2011/01/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-guernsey-2011_g1g1253d/9789264096851-en.pdf. Retrieved .
  8. HM Revenue & Customs, Guernsey: tax treaties. https://www.gov.uk/government/publications/guernsey-tax-treaties. Retrieved .
  9. tigta.gov, Additional Actions Are Needed to Address Non-Filing and Non-Reporting Compliance Under the Foreign Account Tax Compliance Act (Report 2022-30-019). https://www.tigta.gov/sites/default/files/reports/2024-11/202230019fr.pdf. Retrieved .
  10. withersworldwide.com, Global tax transparency and the nonprofit sector | Withers. https://www.withersworldwide.com/en-gb/insight/read/global-tax-transparency-and-the-nonprofit-sector. Retrieved .
  11. irs.gov, 5.21.3 Collection Tools for International Cases | Internal Revenue Service. https://www.irs.gov/irm/part5/irm_05-021-003. Retrieved .

Dates in this block record when each source was read for this page.