Important changes to Jersey Tax Legislation

Jersey tax legislation deems Jersey companies which are managed and controlled and tax resident in a jurisdiction outside Jersey where the highest corporation tax rate is 20% or above as being non tax resident for the purposes of Jersey taxation.  Recent proposals in the UK to lower the corporation tax rate to 19% have led the Jersey Government to announce that, as part of its 2016 Jersey Budget discussions (which will take place before the end of 2015), it will be identifying and implementing all necessary changes to Jersey legislation to ensure that such companies will continue to not be deemed to be tax resident in Jersey. Such changes will be implemented prior to the changes in the UK corporate tax rate taking effect.

This announcement is relevant to the many Jersey companies which are tax resident in the UK or other similar jurisdictions and will be welcome news to those companies and others who continue to wish to use Jersey’s well tested and flexible corporate law regime. It indicates the commitment of Jersey Government to ensure the continuing stability of the tax regime in Jersey which makes the use of Jersey companies so attractive for clients.

Read our briefing Treatment of companies managed outside Jersey.