• Jersey Tax System

  • TAX RESIDENCY

    Tax Residency

    A company incorporated in Jersey is considered to be tax resident in Jersey by virtue of its incorporation.

    A company incorporated outside Jersey is considered to be tax resident in Jersey if its management and control is exercised in Jersey.

    Taxable Basis

    Jersey tax resident companies are taxed on their worldwide income.

    Non-Jersey tax resident companies are taxed only on income generated in Jersey.

  • TAX ADMIN

    Taxable Period

    The taxable period for a company in Jersey is the calendar year i.e. from 01/01 to 31/12.

    Tax Returns

    Every company needs to submit an annual tax return within 7 months after the end of the relevant tax year.

    Tax Assessments

    The Tax Authorities have 5 years to issue an assessment if they consider that the tax return is incorrect.

  • CORPORATION TAX

    Corporation Tax

    The income tax rate in Jersey is 0% for all companies except for:

    1. Financial services companies which are taxed at 10%.
    2. Utility companies and oil importation companies which are taxed at 20%.
    3. Income from immovable property located in Jersey (irrespective if the owner company is taxed at a lower rate) which are taxed at 20%.
  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income of a Jersey company is taxable, however under the 0% income tax rate no tax arises.

    Dividends from Local Investments

    Dividend income of a Jersey company from another Jersey company is taxable, however under the 0% income tax rate no tax arises.

    Withholding Tax on Dividends

    Dividend payments by a Jersey company to a foreign shareholder (company or individual) does not suffer any withholding tax.

    Dividend payments by a Jersey company to another Jersey company does not suffer any withholding tax.

    Dividend payments by a Jersey company to a Jersey tax resident individual suffers withholding tax at the rate of 10% or 20% depending on the rate of tax the company is subject to. The individual is entitled to a tax credit equal to the amount withheld by the company.

  • INTEREST

    Interest Income

    Interest income of a Jersey company is taxable at the applicable rate of corporation tax for the company i.e. at 0%, 10% or 20%.

    Interest Expense Deductibility

    Interest expense is tax-deductible only if incurred wholly and exclusively for the generation of income.

    Withholding Tax on Interest

    Jersey does not impose any withholding tax on payments to foreign recipients.

    There is no withholding tax on the payment of interest by one Jersey Company to another Jersey company.

  • ROYALTIES

    Royalty Income

    Royalty income of a Jersey company is taxable at the applicable rate of corporation tax for the company i.e. at 0%, 10% or 20%.

    Royalty Expense Deductibility

    Royalty expense incurred wholly and exclusively for the production of income is allowed as tax-deductible.

    Withholding Tax on Royalties

    Jersey does not impose any withholding tax on royalty payments to foreign recipients.

  • TAX LOSSES

    Ordinary Tax Losses

    Ordinary tax losses can be carried forward indefinitely and be set-off against taxable income of future years.

    There is no carry back of ordinary tax losses.

    Group Relief

    The Jersey tax system allows for Jersey resident companies to form a group for tax purposes whereby tax losses may be transferred between members of the tax group. However, it is not possible to relieve losses between two companies taxed under different rates.

    A tax group is created when:

    • One company holds directly or indirectly more than 50% of the share capital of the other company.
    • One company own directly or indirectly more than 50% of the share capital of two other companies.
  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The disposal of shares of a Jersey company by its foreign shareholder is exempt from taxation in Jersey.

    Capital Gains

    Capital gains are not taxable in Jersey.

    Capital Losses

    Capital losses are not tax-deductible in Jersey since there is no capital gains tax.

  • PARTNERSHIPS

    Partnership Profits

    General and Limited partnerships are treated as transparent entities for tax purposes which means that their profits are taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    The profit of a Jersey Branch generated in Jersey is taxable in the same manner as Jersey companies (i.e. taxed at 0% except for business activities which are taxable at 10%).

    There is no tax in Jersey on the remittance of the profit of a Jersey Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Stamp duty, in the form of a new Land Transactions Tax introduced in 2010, is imposed on the transfer transactions involving immovable property in Jersey and on share transactions of companies which own immovable property in Jersey.

    The Land Transactions Tax is imposed on the value of the transaction as follows:

    Property Value Rate
    £0 - £50,000 0.5%
    £50,000 - £300,000 1.5%
    £300,000 - £500,000 2%
    £500,000 - £700,000 2.5%
    £700,000 - £1,000,000 3%
    £1,000,000 - £1,500,000 3.5%
    £1,500,000 - £2,000,000 4%
    Over £2,000,000 5%
  • CAPITAL DUTY

    Capital Duty

    There is no capital duty in Jersey.

  • GST

    Jersey levies Goods & Services Tax (GST) which is similar to VAT.

    GST Taxable Transactions

    Goods and Services Tax is levied on the supply of goods and services.

    GST Standard Rate

    The standard rate of Goods and Services Tax is 5%.

    GST Reduced Rate(s)

    The reduced rates of Goods and Services Tax is 0% (residential and other property, prescription medicine, exports and international services).

    GST Exempt Transactions

    Supplies of finance, insurance, postal services, certain medical supplies and supplies by charities are exempt from Goods & Services Tax in Jersey.

    GST Registration Threshold

    The registration threshold for Goods and Services Tax purposes in Jersey is £300,000.

    GST Filing & Payment

    Filing of Goods and Services Tax returns and the payment of Goods and Services Tax liability is made every 3 months.