Jersey: Offshore Legal and Tax Regimes
Taxation of Foreign Employees of Offshore Operations
This section refers to the taxation of foreign employees of non-resident operations and International Business Companies; see Domestic Personal Taxation for the general principles of individual taxation in Jersey, which also apply to the resident employees of non-resident entities. There is in fact no distinction between the employees of resident or non-resident operations. It is a question of individual status. Most types of compensation and benefit paid to employees are taxable; there are no special privileges or exemptions for expatriate workers.
There is no statutory definition of residence. Jersey often follows the UK in this respect. Normally, an individual is resident if he spends more than six months on Jersey in any one year, or more than 3 months on average in each of 4 consecutive years. If the individual has a place of abode in Jersey, the rules are tighter.
Non-residents are liable to pay Jersey income tax only in respect of income arising in Jersey or from Jersey sources. Commonwealth or EU citizens may claim proportional allowances in respect of Jersey income. By concession, Jersey bank interest is not taxed in the hands of non-residents. Tax due from a non-resident director of an International Business Company in respect of duties performed on the island is not pursued.