Jersey legal, accounting and tax considerations in 2024

Since 2003, Healy Consultants Group assists our multi-national Clients to timely accurately and completely discharge their legal, accounting, audit and tax filing obligations. Our in-house Accounting and Tax Department helps you with i) corporation tax ii) EU VAT iii) regulatory licenses iv) book-keeping and v) monthly and quarterly government reporting, including sales tax and payroll.

• Zero tax entities

  • The entity is not classified as a i) utility company or ii) a regulated financial service company or iii) a large corporate retailer.
  • Economic substance requirements are in place, including i) the company employs local staff and ii) leases a physical office in Jersey.

• Corporation tax

  • For the majority of Jersey entities, there is no annual corporation tax;
  • The corporate tax rate is 20% i) for utility companies and regulated financial services companies and ii) for large corporate retailers. Only companies that are taxed at the rate of 20% may offset trading losses against their other income for the year or carry back those losses.
  • A company is only regarded as tax resident in Jersey if it is managed and controlled in Jersey.
  • A non-resident Jersey entity is one that satisfies multiple criteria including i) being managed and controled outside of Jersey and ii) having no active staff in Jersey and iii) having no physical office in Jersey;
  • An annual tax return must be submitted to the Jersey Tax Authorities by both resident and non-resident entities. The tax return should be submitted within seven months after the accounting year end. All companies must submit a copy of their financial statements with their corporate tax return.
  • A penalty for GBP300 will be implemented for corporate tax returns submitted after the filing date.
  • Jersey has double taxation avoidance arrangements with 15 different countries, including the United Kingdom and Guernsey. Double taxation relief is available on all income taxed at source excluding UK dividends received and UK debenture interest.
  • Jersey has signed Tax Information Exchange Agreements (TIEAs) with 27 countries including Germany, Australia, Canada, China, India, South Africa, Japan, UK, France, New Zealand and USA.

• Value Added Tax

  • There is neither sales tax nor VAT in Jersey;
  • For EU VAT purposes, the Channel Islands (Jersey, Guernsey, Alderney, Sark and Herm) are NOT part of the UK or the European Union. VAT in Jersey follows a different system;
  • A Jersey company must register for EU VAT under the following circumstances:
    • When online sales exceed a certain amount of turnover in any one European country. The trigger limit varies by country. For example the threshold limited for the sale of goods in Ireland would be €75,000;
    • The company’s imports into the EU and sale of goods within the EU exceed a certain amount of turnover in any one European country. The trigger limit varies by country;
    • If it is a Jersey service provider performing its services in any EU country;

• Employee and Personal Tax considerations

  • Non-resident employees of Jersey employers are liable for tax only on income arising in or received in Jersey.
  • Jersey-resident individuals suffer income tax on worldwide income and profits. Our Client’s who become Jersey residents will be taxed on their worldwide income at the rate of 20% on the first £625,000 and at the rate of 1% on any income in excess of this amount. There is, however, a statutory relief in the case of individuals who are resident, but not ordinarily resident in Jersey, so that foreign income not remitted escapes taxation.
  • The high value residency threshold is now GBP725,000. An individual can be granted high value resident status if he satisfies that doing so will have a social or economic benefit and is in the best interests of the community. Having this status, allows you to buy or lease a property in Jersey as your main place of residence.
  • All employers in Jersey are obliged to submit regular returns and payments to the Jersey authorities including i) ITIS return to be submitted every month and ii) Class 1 contributions to be submitted every quarter and iii) Manpower return to be submitted every 6 months and iv) Benefit in kind (BIK) returns to be submitted annually.

• Healy Consultants Group fees for accounting and tax support

  • Healy Consultants Group assists multi-national Clients’ timely accurately and completely discharge their legal, accounting, audit and tax obligations. To help your Firm budget fees:

    Jersey accounting and tax task	£
    Jersey active company annual tax return	950
    Jersey dormant company annual tax return	550
    Jersey PLC audited annual tax and accounting fees	7,950
    Jersey VAT monthly reporting	750
    Jersey personal tax return	4,250
    Jersey company residence certificate	1,750
    Tax Authority written confirmation of legal tax exemption	4,500
    Average monthly bookkeeping service fees	Click this link
    Average employee payroll accounting fees (1 employee)	650
    Company deregistration fees	4,850

  • Healy Consultants Group’s monthly booking keeping services include i) receiving monthly invoices from our Client ii) labelling monthly bank statement transactions iii) preparation of a monthly income and expenses statement iv) highlighting anomalies and v) monitoring monthly profit levels to minimize annual tax.

• Other considerations

  • Jersey has a special relationship with the European Union (EU). While not part of the EU, Jersey complies with the EU Directives on trade in industrial and agricultural products but is not obliged to implement Directives or Regulations in other areas such as taxation, financial services and the European Monetary Union.
  • Jersey is neither a member state nor an associate member of the European Union. Jersey remains outside the European Union for the purposes of VAT and directives relating to fiscal harmonisation. Most European directives do not apply in Jersey.
  • Jersey is one of the most politically stable offshore centres in the world because i) it is a member of the OECD and ii) is on the G20 white list of offshore jurisdictions iii) it’s regulatory regime is compliant with international standards and is endorsed by IOSCO, OECD, IMF and G20 iv) it boasts a substantial sovereign strategic reserve and has no public debt v) its gross domestic product per head is well above that in the United Kingdom vi) it enjoys an “AAA” sovereign rating by Standard & Poor’s.
  • Clients should be aware of their personal and corporate tax obligations in their country of residence and domicile. They must fulfil these obligations annually. Let us know if you need Healy Consultants Group’s help to clarify your annual reporting obligations.
  • Starting from 2025, large multinational companies operating on the Isle of Man, Jersey and Guernsey will be subject to a 15% tax rate. These three Crown Dependencies have reached a consensus on a “joint approach” to comply with the international tax reforms endorsed by the G20 in 2021.
  • Internal audit services
  • Europe tax comparisons

• Legal and compliance considerations in Jersey

  • Every company must complete and file with the Registrar of Companies an annual return by the end of February each year. There is no requirement for the filing of financial statements with the Registrar of Companies for private companies.
  • An annual return which gives details of all current shareholders must be filed at the public registry in January of each year. It should be noted that fines are payable if a company fails to file its annual return on the due date.
  • For each Jersey company a register of shareholders must be kept at the legal registered address of the company and be available to members of the public and the company itself for inspection. In addition, The Financial Services Law 2020 has introduced a register of beneficial owners in Jersey. Each company must now declare their ultimate beneficial owner to this registry.
  • Other documents that must be maintained at the registered office, although not open to public scrutiny, include i) minute book of directors’ and shareholders’ meetings and ii) a register of directors and secretary. The company must show its name in full on all stationery and keep a company seal at the registered office.
  • Jersey entities including i) investment holding companies ii) IP companies iii) trading companies iv) professional service providers and v) funds and other financial services companies are required to employ local staff and lease a physical office.
  • A Jersey entity should maintain proper books of accounts and record all invoices and receipts for their company expenses and income. The Jersey Authorities can review company records from time to time. Examples of receipts include those related to business purchases, for example i) assets ii) general business and iii) travel expenses.
  • Jersey entities should also maintain the secretarial records such as board resolutions and meeting minutes of all the important management decisions taken by the Directors.
  • Jersey has an exclusive constitutional arrangement with the United Kingdom. The Channel Islands (which are made up of Jersey and Guernsey) arrangement allows them to decide locally on Island wide legislative matters of concern including i) tax ii) legal system and iii) courts of law. The United Kingdom is responsible for the external affairs of both Islands.
  • The Jersey legal system is mainly based on English Common Law and local statute. Companies incorporated in Jersey are governed by the Companies Law 1991 which is based largely on the English 1948 Companies Act.

• FAQs

  • When do I need to file my corporate tax returns in Jersey?

    The tax return should be submitted within seven months after the accounting year end

  • What is the corporate tax rate in Jersey?

    For the majority of jersey entities, the corporate tax rate is 0%

    The corporate tax rate is 20% i) for utility companies and regulated financial services companies and ii) for large corporate retailers

  • If I set up a company in Jersey, will it be seen as tax evasion?

    No, Jersey have introduced economic substance requirements for anyone setting up a corporate entity in Jersey. Economic substance requirements include i) the company must employ local staff and ii) lease a physical office.

  • How can I find accountants for my Jersey company?

    Healy Consultants can prepare financial reports, file annual returns and maintain accounting records for Jersey companies.

Conclusion

Client’s should be aware of their personal and corporate tax obligations in their country of residence and domicile. They must fulfil these obligations annually. Let us know if you need Healy Consultants Group’s help to clarify your annual reporting obligations.