The Economic Substance Requirements For Jersey Fund Managers

The Taxation (Companies - Economic Substance) (Jersey) Law 2019 came into force on 1 January 2019. The substance requirements apply to Jersey tax-resident companies which carry on certain specified geographically mobile activities, including fund management business. They have been implemented in order to comply with the requirements of the EU Code of Conduct Group for the purpose of demonstrating that the profits generated by such companies are commensurate with their economic activities and presence in Jersey. Jersey was put on the EU whitelist on 12 March and the Crown Dependencies issued joint Guidance Notes on aspects of the Substance Requirements on 26 April 2019. 

Fund managers are in scope of the law where they have gross income in relation to their fund management activities. Fund vehicles themselves are outside the scope of the Law.