Extension Of Economic Substance Requirements To Partnerships

Draft legislation has been lodged for debate in the Jersey legislature which will have the effect of extending the economic substance requirements, introduced for companies tax resident in Jersey in 2019, to partnerships.  The legislation is scheduled to be debated on 29 June 2021 and if approved will come in to force shortly thereafter.

What partnerships are in scope

The new rules will apply to all forms of partnership which are resident in Jersey and generating gross income from relevant activity. These include:

(a) an incorporated limited partnership established under the Incorporated Limited Partnerships (Jersey) Law 2011;

(b) a limited liability partnership registered under the Limited Liability Partnerships (Jersey) Law 2017;