In Belgium alone FiscalReps have sub-classified these 18 classes into more than 150 for the purposes of accurately coding products and subsequently calculating premium tax and parafiscal charges for their clients in this country. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. Discover upcoming public holiday dates for Guernsey and start planning to make the most of your time off. Investment EU nationals are not subject to any visa controls. However, the bulk of the energy needs in the Channel Islands are met from supplies from the EU, mainly by electricity cable interconnectors from France, so the Channel Islands have a strong interest in a properly functioning, competitive EU energy market, with security of supplies. The life expectancy is 80.1 years for males and 84.5 years for females. Moving outside of the EU, Guernsey captive insurers find themselves in an equal position to those captives domiciled within the EU. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. As major well-regulated financial centres, both Guernsey and Jersey are significant net providers of liquidity and investment funds to the EU economy. Air and sea links are vital for small island economies like Guernsey and Jersey. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. However, the bulk of the energy needs in the Channel Islands are met from supplies from the EU, mainly by electricity cable interconnectors from France, so the Channel Islands have a strong interest in a properly functioning, competitive EU energy market, with security of supplies. Guernsey, second largest of the Channel Islands. Similarly, EU fisheries conservation measures under the Common Fisheries Policy (CFP) did not apply directly to the Channel Islands under Protocol 3 and the Channel Islands did not pay into or receive money from the EU (or UK) budget, including the European Maritime and Fisheries Fund – EMFF. They therefore make a very important contribution to the economy and to community life in both Bailiwicks. Competition policy per se was not within the scope of Protocol 3 (although normal conditions of competition in trade in agricultural products apply) so there was no obligation on the Channel Islands to follow general EU competition rules. 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Other EU member states will not even consider the registration of non-EU entities as taxpayers. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. As small islands, Guernsey and Jersey have a services-based economy. Guernsey ceased to be ruled by Normandy in 1204. Guernsey and Jersey are among a small group of third country jurisdictions that are the subject of a European Commission “adequacy decision”, meaning that they have been officially assessed as meeting EU data protection standards. This will continue to apply for the duration of the Transition Period. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. Non-EU-based insurers successfully register with HMRC and file ongoing IPT in the UK, and similar success is regularly evidenced in the Netherlands. The Channel Islands have implemented domestic legislation which is essentially equivalent to the new EU General Data Protection Regulation (GDPR) and the related EU Directive on data exchange between law enforcement authorities (LED). Despite the UK’s withdrawal from the EU on 31 January 2020, there will be no immediate change to the Channel Islands relationship with the EU. Both Islands are noted for the quality of their fresh fish and seafood, for their dairy products made from the unique Guernsey and Jersey cattle breeds, and for other products such as cut flowers, potatoes, wine and cider. It does not derive from EU law but predates it and hence was not linked to Protocol 3. Guernsey is currently part of the EU Customs Union by virtue of Protocol 3, which also provides (with limited exceptions) for the free movement of persons between Guernsey and the EU. They have a combined population of approximately 165,000, and a combined GDP of approximately £6.2billion. Further details of the regulatory cooperation between the Channel Islands and the EU on financial crime can be found in the separate note “The Channel Islands and the EU: tackling financial crime“. EU 27 nationals represent around 20% of the resident population in Jersey and around 7% of the resident population in Guernsey. Tourist and business visits UK travellers visiting the EU once the Brexit transition period ends will face a number of new hurdles. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. Like transport, energy services are a service under EU law and so were outside the scope of Protocol 3. The Bailiwick ranked 10th in the world in 2015 with an average life expectancy of 82… The Channel Islands are not members of the International Telecommunications Union and the UK Regulator, OFCOM, manages and licences spectrum rights of use on the Channel Islands’ behalf. By using this site you are giving your consent for us to set cookies. The Channel Islands are third countries for the purposes of the EU’s Common Commercial Policy (CCP). Director of Public Health Dr Nicola Brink said 975 doses arrived on the island on Thursday. Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. Protection of the environment on land and in the surrounding marine areas is crucial for the unique ecosystems of the Channel Islands. Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. However, Regulation 706/73 imposed certain constraints on the Channel Islands’ own systems of agricultural support: state aid for exports of certain agricultural products to Member States and to non-EU countries could not exceed the relevant aid, refund or compensatory amount permitted to be granted by the UK under the respective EU rules. Otherwise transport legislation in the Channel Islands is largely based on international standards set by bodies such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO). However, for Protocol 3 purposes (and hence until the end of the Transition Period), a person who was born in the UK, or who has at least one parent or grandparent who was born in the UK, or who has resided in the UK for 5 years is not a “Channel Islander”. Air and sea links are vital for small island economies like Guernsey and Jersey. Competition policy EU electricity Directives in the Third Energy Package therefore generally did not apply in the Channel Islands. The implementation of legislation has been underpinned by active cooperation between veterinary, agricultural and food safety experts in the Channel Islands and their EU counterparts. It does not derive from EU law but predates it and hence was not linked to Protocol 3. In the ongoing desire for global compliance, solutions are being sought to deal with ‘difference in conditions/difference in limits’ (‘DIC-DIL’) covers and other non-admitted coverages underwritten by captives. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. The answer depends on whether you are selling goods or services. With Alderney, Sark, Herm, Jethou, and associated islets, it forms the Bailiwick of Guernsey. The Channel Islands are committed to some international environmental standards on which EU legislation has subsequently been based. There is close bilateral cooperation with the UK and France on maritime protection. Comprehending and appreciating the issues as well as staying on top of ongoing developments is key to the successful and ongoing compliance of any captive insurer. Further details of the tax and regulatory cooperation between the Channel Islands and the EU can be found in the separate note “CI-EU tax cooperation“. Such people do enjoy full free movement rights throughout the EU (including the right to work and reside). As Guernsey is not party to the UK Tax Treaty with the US, FET of 4% would apply to insurance premiums written on a direct basis by a Guernsey domiciled captive, or 1% of reinsurance premiums. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. The EY classification doesn’t determine the length of time stock is to be static in a warehouse before it becomes ‘property’ (classes 8 and 9) versus ‘goods in transit’ (class 7). Channel Islanders and EU free movement rights Complexities in these territories arise with the differing rules and requirements on a stateby-state basis in addition to the potential FET obligations. Such people do enjoy full free movement rights throughout the EU (including the right to work and reside). This requirement was previously set out in Protocol 3 and continues to apply for the duration of the Transition Period. Overview. Otherwise transport legislation in the Channel Islands is largely based on international standards set by bodies such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO). This Protocol lapsed with the UK’s withdrawal, but its substantive provisions will continue to apply during the Transition Period until 31 December 2020 provided for in the Withdrawal Agreement. Looking at the 2nd Non-Life Insurance Directive (88/357/EEC) article 2(d) – Location of Risk Rules – interpretation of ‘vehicles of any type’ can also vary across member states. Above, Oslo, who also enjoys a trade-only relationship with the EU The Bailiwick of Guernsey is in the Commonwealth (Commonwealth of Nations), although not as a member, in its own right. Jersey and the European Union. Whilst neither Guernsey nor Jersey is a member of the EU, some aspects of EU legislation are adopted by the Channel Islands in compliance with the bilateral agreements in place between Guernsey and Jersey and member states of the EU, including for example a number of tax information exchange agreements with … Guernsey is not part of the European Union. WE ARE GUERNSEY is the brand under which Guernsey Finance promotes the island's financial services sector internationally. Jersey has a special relationship with the European Union (EU). The Commission has reissued its document to provide a brief update to regulated firms, the States of Guernsey and other stakeholders on recent developments relating to the EU’s Markets in Financial Instruments Directive that could have a significant impact of firms located in the Bailiwick who are, or may be … Exports of goods from the Channel Islands to the EU and from the EU to the Channel Islands are treated as intra-EU trade. Such people do enjoy full free movement rights throughout the EU (including the right to work and reside). In Belgium after only two days in a warehouse the stock can be classified as classes 8 and 9, whereas in France the stock can be warehoused for up to two months under class 7. However, despite its location in Europe, non-EU membership and the subsequent inability to passport insurance business across the EU brings unique challenges for direct writing opportunities, along with premium tax compliance hurdles. Environmental legislation was not covered by Protocol 3 but in some cases EU environmental standards, in areas like air and water quality, are used as guidelines for domestic legislation in the Channel Islands, even though there was no legal obligation to do so. For those areas previously covered by Protocol 3 (and hence still covered during the Transition Period), EU legislation is directly applicable, and the Channel Islands are regarded as part of the UK Member State. Protocol 3 excluded “Channel Islanders” from the provisions of the Treaty relating to the free movement of persons provisions of the Treaty. The European Union (Brexit) (Bailiwick of Guernsey) Law, 2018 ("the a Order m Council No. Previous Years 1. Energy >b /"i Amendment of the Brexit Law. The US and Canada both offer opportunities for local policyholders to file and settle premium taxes and charges on behalf of their captive insurers. The European Communities (Bailiwick of Guernsey) Law, 1973b ("the 1973 Law") is amended as set out in Schedule 1. The Channel Islands have shown themselves by their actions to be reliable, active and cooperative partners of the EU and of the wider international community. Whilst neither Guernsey nor Jersey is a member of the EU, some aspects of EU legislation are adopted by the Channel Islands in compliance with the bilateral agreements in place between Guernsey and Jersey and member states of the EU, including for example a number of tax information exchange agreements with … The Channel Islands are not members of the International Telecommunications Union and the UK Regulator, OFCOM, manages and licences spectrum rights of use on the Channel Islands’ behalf. Environment 7 It has the highest tides in Europe. The PA news agency looks at key questions on travel to the EU in 2021. However virtually all aviation and shipping links from the Channel Islands are to the UK, France and other EU destinations. Further details can be found in the separate note“The Channel Islands and Brexit”. The Channel Islands have a robust and internationally respected system of financial regulation, including with respect to tackling money laundering and terrorist financing. Authorities may also take a different view on ongoing compliance by non-EU insurers, to regularisation of a historical position for the insurer looking to seek compliance. For example, the Islands’ airports have been formally assessed by the European Commission as meeting EU aviation security standards – an assessment endorsed by the EU’s aviation security committee. Competition policy per se was not within the scope of Protocol 3 (although normal conditions of competition in trade in agricultural products apply) so there was no obligation on the Channel Islands to follow general EU competition rules. Karen Jenner, of FiscalReps, speaks to Captive Review about the hurdles surrounding premium tax compliance for insurers and captives domiciled in Guernsey. 2. ""EU provision" has the meaning given in the European Union (Brexit) (Bailiwick of Guernsey) Law, 2018, and includes an item of Preserved EU law within the meaning of that Law,", and in the definition of "implementation", for "Community provision" substitute "EU provision". The Channel Islands are third countries for the purposes of the EU’s Common Commercial Policy (CCP). It's a self-governing British Crown dependency, and the locals are quick to point out that it is not part of the United Kingdom and European Union. The German tax authorities deem this register to determine that any vessels operating out of their ports are subject to German premium tax. Tourism is therefore an important industry. An original version of this article was published Captive Review's 2015 Guernsey report, February 2015. Non-EU-based captive insurers may be able to take advantage of the locally based policyholder to file premium taxes on their behalf in Germany. The Channel Islands were outside the EU for the purposes of transport, since this was a service provision which was not covered by Protocol 3. Only those provisions within EU trade and investment agreements that gave improved market access to the EU for goods from a non-EU country will continue to apply directly in the Channel Islands for the duration of the Transition Period. EU nationals are not subject to any visa controls. There is close bilateral cooperation with the UK and France on maritime protection. Guernsey, and other such international finance centres, committed to addressing the EU's concerns about a supposed 'lack of economic substance' by introducing so-called substance legislation by the end of 2018, in order to stay off the proposed EU … The median age for males is 40 years and for females is 42 years. They are British Crown Dependencies, with a direct allegiance to the British Crown which goes back over 800 years. The UK’s withdrawal from the EU on 31 January 2020 does not directly affect the Channel Islands’ relationship with the EU 27 in key areas like tax, anti-money laundering, financial services, and data protection where the Islands were already third countries and as such remain committed to close cooperation with the EU. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. Through being a part of the customs union, the Channel Islands apply the Common External Tariff (CET) to imports of goods from third countries. The proximity of the Flamanville nuclear power station to the Channel Islands makes EU competence for nuclear safety standards under the Euratom Treaty of importance. It does not derive from EU law but predates it and hence was not linked to Protocol 3. These requirements will continue to apply until the end of the Transition Period. Guernsey neither contributes to, nor directly receives anything from, the funds of the European Union. (once available) the third-country passporting regime. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. In conclusion, it would appear that there are premium tax compliance issues aside from regulatory challenges for all captive insurers writing cross border business – albeit those challenges may differ slightly depending on whether the captive is based within or outside EU member states. This will no longer be the case after Brexit. Exports of goods from the Channel Islands to the EU and from the EU to the Channel Islands are treated as intra-EU trade. Channel Islanders and EU free movement rights Trade An interesting complication arising from the varying approaches is with regard to the treatment of stock. European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property. However, for Protocol 3 purposes (and hence until the end of the Transition Period), a person who was born in the UK, or who has at least one parent or grandparent who was born in the UK, or who has resided in the UK for 5 years is not a “Channel Islander”. The Bailiwick of Guernsey belongs to the Common Travel Area.A bailiwick is the area or district of jurisdiction of a Bailiff. The main exports of goods are agricultural and fisheries products. In the wake of this announcement, Guernsey’s chief minister, Jonathan Le Tocq, wrote to the European tax commissioner Pierre Moscovici to welcome the news. The Channel Islands are not members of the International Telecommunications Union and the UK Regulator, OFCOM, manages and licences spectrum rights of use on the Channel Islands’ behalf. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. Protocol 3 does not cover services, so the Channel Islands are treated as third countries for the purposes of EU financial services legislation. In the ongoing desire for global compliance, solutions are being sought to deal with 'difference in conditions/difference in limits' ('DIC-DIL') covers and other non-admitted … The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. One distinct advantage to Guernsey insurers not being part of the EU must not be overlooked. Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. Guernsey and Jersey are becoming more relevant to Asian managers looking to take advantage of investment and fundraising opportunities in the UK/Europe. These international standards have often been transposed into EU law, and built upon. For example, the Islands’ airports have been formally assessed by the European Commission as meeting EU aviation security standards – an assessment endorsed by the EU’s aviation security committee. Both Bailiwicks have long agricultural and fisheries traditions. Each Bailiwick has significant marine energy resources (both wind and tidal current) that, if developed, could be exported into the EU to assist with climate change commitments. The population is 63,026 (July 2016 est.) However, for Protocol 3 purposes (and hence until the end of the Transition Period), a person who was born in the UK, or who has at least one parent or grandparent who was born in the UK, or who has resided in the UK for 5 years is not a “Channel Islander”. In simple terms, the Island is treated as part of the European Union for the purposes of free trade in goods, but otherwise is not a part of the EU. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. 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