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Jersey: Domestic Corporate Taxation

Calculation of Taxable Base

For companies, income tax was normally assessed for income arising in the calendar year (the Year of Assessment). Income was defined fairly comprehensively.

Allowable expenditure needed to be incurred 'wholly and exclusively' for the business; however, mixed private/company expenses could often be apportioned.

There was a system of capital allowances whereby capital expenditure was pooled and 25% of unamortised capital expense was charged off against income in each year. The rules were reasonably complex. There were special rules for glasshouses (important in Jersey).

Subject to some conditions, losses could be carried forward; there were no provisions for terminal loss relief. There was no group relief for company losses, but it was often possible to adjust an intra-group situation by making inter-company management charges, provided all companies were Jersey-resident.

Tax paid at source on foreign investment income could be deducted from that income.

NB: The 0/10% tax regime applies as from 2009.



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