6. Taxation
a. General
There are no capital gains, estate or inheritance taxes in
Jersey. A goods and services tax was introduced on 6 May 2008 at
the rate of 3 per cent but does not apply to non-resident
international business.
Formerly, non-resident owners of Jersey companies were able to
apply for exemption from liability to tax in Jersey and to pay a
flat-rate fee of GBP600. That flat-rate fee was discontinued at the
end of 2008. From 1 January 2009 all Jersey companies are
zero-rated unless they are resident financial services businesses,
in which case a 10 per cent rate of tax applies. As part of the EU
Tax Package and Code of Conduct on Business Taxation, Jersey will
phase out International Business Companies by 2011.
The Jersey standard rate of income tax is 20 per cent (including
resident partnerships and trusts with resident beneficiaries) and
has remained at a rate unchanged for over 60 years. Trusts are not
taxable in Jersey provided that the settlor and beneficiaries are
not resident in the island.
In response to the EU Tax Package, Jersey has introduced
withholding tax arrangements for EU residents receiving interest
income. The recipients may choose either to have income information
provided to the tax authorities of their country of residence or to
pay Jersey withholding tax. In common with most other offshore
financial centres, Jersey has entered into a number of tax
information exchange agreements.
During 2009 Jersey was included on the ‘white list’ approved by
the G20 jurisdictions.
b. Resources
i. Legislation
Income Tax (Jersey) Law 1961
Good and Services Tax Law 1997
ii. Website
Income Tax Office www.incometax.gov.je