Jersey Economic Substance For Partnerships

SUMMARY

Under the Taxation (Partnerships – Economic Substance) (Jersey) Law 2021, an economic substance test will apply to a Jersey resident partnership in each relevant financial period in which it has gross income from relevant activity carried on by or through it unless an exemption applies. Partnerships that are funds are generally out of scope but a general partner of a fund should consider whether it is required to meet the test for fund management business. If a resident partnership is in scope and does not meet the requirements, financial and information sharing penalties will apply.

Carey Olsen continues to be closely involved in the development of substance legislation and is happy to advise on the impact it may have on structures in Jersey, as well as the equivalent regimes in Guernsey, BVI, Bermuda and the Cayman Islands.