EU finance ministers have formally approved Jersey's
economic substance legislation by removing the jurisdiction from
the "grey list" on 12 March 2019 and the Privy Council
granted formal approval to the Taxation (Companies - Economic
Substance) (Jersey) Law 2019 (the Law) on 13 March 2019. The Law
takes effect from 1 January 2019.
The Law – similar to laws passed in other offshore
jurisdictions in response to findings of the EU Code of Conduct
Group - requires relevant companies to demonstrate economic
substance in the jurisdictions in which they are tax resident.
Following approval of the Law, further Guidance Notes about the
practical implications of the Law are expected shortly.
