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Jersey: Types of Company

Exempt Private Company

NB As a result of the introduction of the 'zero/ten' corporate tax reform in January 2009, no new Exempt Companies could be formed in Jersey after June 3, 2008. Exempt companies formed prior to that date are treated as resident for tax purposes, and are charged corporate tax at either 0% or 10%. See Domestic Corporate Taxation for further details.

A private company limited by shares had to apply to the Comptroller of Income Tax to be exempt; the application cost was GBP600 and acceptance was subject to the following conditions (this is a simplified statement):

  • Jersey residents could not have any direct interest in the shares of an exempt company, but could have owned shares in a company which did;
  • The exempt company's beneficial owners were required to disclose to the Financial Services Commission;
  • The company must not have failed to pay income or corporation tax in a previous year;
  • The company could not have been exempt in a previous period separated from the current period by one year or more, unless there had been a substantial change of ownership.

Exempt status was applied for each year and lasted for one year; see Offshore Legal and Tax Regimes for details of the tax situation of exempt companies; the main advantage was that foreign income remained untaxed.

 

 

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