Taxation in Jersey

Taxation of trusts, companies and limited partnerships in Jersey

There are a number of different taxation regimes covering these entities, as set out below:

Jersey tax resident

These entities pay income tax at a rate of 20% on taxable profits or income, whether they are trusts, companies, limited partnerships or individuals. This regime applies primarily to those businesses and individuals resident and trading within Jersey, but may also apply to non-resident investors.

Exempt companies

These companies pay "exempt tax" of £600 per annum, which is payable on 1st January. An application must be made for "exempt status", and such status will only be granted if the shares of the company in question are beneficially owned by non-residents of Jersey. There are no other impositions or taxes on these companies and consequently the vast majority of companies incorporated in Jersey have "exempt" status.

International Business Companies ("IBC")

Companies eligible for "exempt" status may instead elect to be taxed as an IBC. A Jersey IBC should not be confused with an IBC incorporated in Caribbean offshore jurisdictions. It is purely a taxation concept.

A Jersey IBC will pay income tax on its taxable profits at the rate of 2% or less.


Trusts

In theory, trusts are taxable in Jersey in the same manner as any other entity, but by concession, income tax is not levied on trusts if the settlor and beneficiaries are resident outside the Island.