Jersey’s economic substance rules

Throughout 2017 the EU Code of Conduct Group (Business Taxation) conducted a screening process whereby the tax regimes and administrations of more than 90 jurisdictions were subject to detailed analysis. In December 2017 Jersey was determined to be a cooperative tax jurisdiction. However as part of an ongoing dialogue with the EU the Government of Jersey made a number of commitments in relation to Jersey tax resident companies demonstrating economic substance in the jurisdiction.

Jersey amongst other offshore financial centres such as Guernsey Isle of Man Cayman Islands Bermuda and the British Virgin Islands implemented economic substance legislation effective for financial periods starting on or after 1 January 2019. References to articles below are to those in the Taxation (Companies – Economic Substance)...