The agreement is based, broadly, on the OECD Model Tax Convention, which Guernsey has generally followed in its negotiations with other jurisdictions in recent years. To date, Guernsey has signed 14 comprehensive DTAs and 12 partial DTAs with other jurisdictions.

"I was pleased to sign this agreement at the Estonian Embassy in London, which will support business and individuals operating in both Guernsey and Estonia and ensure that they understand the way that they will be taxed by each government," said Deputy Lyndon Trott, The Vice President of the Policy & Resources Committee. He signed the DTA earlier this month alongside Her Excellency Tiina Intelmann, the Ambassador of Estonia to the UK, at the Estonian Embassy in London.

"The signing of this agreement also highlights once again the island's commitment to meeting international tax standards including the most recent BEPS standards, set by the OECD. Since 2009 Guernsey has had entrustment to directly negotiate and conclude Double Taxation Agreements, as well as Tax Information Exchange Agreements, with other jurisdictions, and the successful conclusion of this agreement demonstrates the continued development of Guernsey’s international identity and commitment to global standards.”

A DTA is an agreement between two governments which sets out the rights to tax certain income. It attempts to ensure that an individual or company does not get taxed twice on the same income (by the two governments in question). The new DTA between Estonia and Guernsey also permits the exchange of information between the two governments. The DTA will enter into force once internal procedures have been completed in both Guernsey and Estonia.

Pictured top: Deputy Trott and Tiina Intelamnn.