The Taxation (Partnerships - Economic Substance) (Jersey) Law
2021 (theLaw) came into force on 8 October 2021
with an effective date of 1 July 2021 and a six month transition
period to 1 January 2022 for partnerships established before 1 July
2021.
The Crown Dependencies issued their joint guidance on the
application of the economic substance rules to partnerships on 21
December 2021 (theGuidance).
The economic substance requirements apply to "resident
partnerships" (including incorporated limited partnerships,
limited liability partnerships, limited partnerships, separate
limited partnerships, Jersey-resident foreign limited partnerships
and general partnerships) that carry on certain specified
geographically mobile activities, including fund management
business and finance and leasing business. Limited liability
partnerships and incorporated limited partnerships that carry on
holding partnership business are also subject to the substance
requirements.
