"Zero/Ten" Corporate Tax Reforms In Jersey

Jersey is introducing changes to the way that companies are taxed in order to ensure that the island meets international standards while maintaining its competitive edge in the offshore financial services sector.

The introduction of the "Zero/Ten tax regime", which is enshrined in the Income Tax (Amendment No. 28) Jersey Law 2007, means that the standard rate of corporate income tax will be zero per cent. A special rate of 10 per cent will apply to financial service companies, including banking, trust advisory services and entities providing fund functionary services.

The changes take effect for existing companies from 1 January 2009 and will apply to all new companies that have been established since 3 June 2008. This legislation replaces the previous system whereby companies incorporated in Jersey as "exempt" companies paid a fixed £600 per annum exempt fee and were then not liable for corporation tax.