1. The profits derived from an industrial or commercial enterprise in one country will not be taxed in the other country except to the extent that they are attributable to a permanent establishment;
2. Profits of shipping or air transport attributable to a resident of either country are not taxed in the other country, regardless of 1.
3. An individual resident in only one of the two countries is exempt from tax in the other country on personal, including professional services performed in the other country on behalf of a resident of his own country (but they must be taxed in his own country)
4. If despite the above, tax is payable in both countries, the tax paid in one country is allowed as a credit against tax due in the other.

In September, 2002, Guernsey and the United States signed an agreement designed to provide for the exchange of information on money laundering and tax evasion activities.

Then US Treasury Secretary, Paul O'Neill, who signed the agreement on behalf of the American authorities stated that: 'This new agreement will formalise and streamline our current co-operation in criminal tax matters and will allow exchange of information on specific requests in civil tax matters as well.'

The US Treasury Department announced in May, 2006, that an exchange of letters between the United States and the States of Guernsey to bring the agreement into effect had been completed on March 30, 2006.

In 2004, the Guernsey Financial Services Commission and the Malta Financial Services Authority signed a Memorandum of Understanding which provides a framework for closer cooperation between the two regulatory bodies. The Memorandum provides a formal basis for cooperation, including the exchange of information and investigative assistance.

Peter Neville, Director General of the Commission, commented: “I am very pleased to have taken this step. I advised Malta on the setting up of its investment service regulation, and I have known the Maltese regulators for many years.” He added: “This Memorandum of Understanding between the Commission and the Malta Financial Services Authority is another step towards strengthening our relationship, providing a formal basis by which we can cooperate and exchange vital information."

In June 2005, the Guernsey FSC and Hong Kong's securities and futures markets regulator, the Securities and Futures Commission, signed a Letter of Intent which provides a framework for enhanced cooperation between the two authorities.

The Letter of Intent, the first to be signed by the Hong Kong SFC with a regulatory body outside Asia, provides a formal basis for strengthening regulatory cooperation, particularly with regard to the supervision of investment products and cross-border trading.

Commenting on the development, Peter Neville, observed that:

"I am delighted to have the opportunity to sign this Letter of Intent with the Hong Kong SFC. The Guernsey Commission and the SFC have developed a very close working relationship over the years. For example, 3 Guernsey umbrella funds with 33 classes have been authorised by the SFC for marketing to the public in Hong Kong. The Letter of Intent is an important further step in deepening that relationship."

In March 2007, the Guernsey Financial Services Commission entered into a Memorandum of Understanding with the Dubai Financial Services Authority (DFSA). This MoU has formalised arrangements for co-operation and information sharing between the two regulators.

Commenting on the MoU, David Knott, Chief Executive of the DFSA observed: “The business links between financial firms in Guernsey and the Dubai International Financial Centre will become increasingly significant, especially with the introduction last year of trust and collective investment fund regimes in the DIFC, making the GFSC an important relationship for the DFSA.”

He added: “Today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as an integrated regulator of its banking and insurance sectors. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other’s jurisdiction.”

In October 2007, the Guernsey government announced that a new Social Security Agreement with Ireland had come into force.

"This is good news for people in Guernsey who have also lived and worked in Ireland," announced Deputy Dan Le Cheminant, Guernsey's Social Security Deputy Minister. "Under this new Agreement, they may be able to get a small, part pension from Ireland when they reach the age of 65 by taking account of social security contributions paid in the past."

Besides pensions, the agreement also covers a number of other benefits, including bereavement benefits, sickness, invalidity and unemployment. It also sets out the rules for where contributions should be paid.