Jersey: Domestic Corporate Taxation
Scope of Income Tax
Jersey income tax was based on the Income Tax (Jersey) Law 1961 as amended by subsequent Finance Laws and Income Tax (Amendment) Laws. Until 1989, corporation tax was payable by limited liability companies registered in but not managed and controlled from Jersey. Such companies were still liable to Jersey income tax on income from Jersey sources (except Jersey bank deposit interest, by concession). The tax was abolished from the beginning of 1989, when exempt companies were introduced. Income tax was then payable by all limited companies, as follows:
- Resident 'income tax' companies paid full income tax on their world-wide income
- International Business Companies paid full income tax on their income arising in Jersey (see Offshore Legal and Tax Regimes for the treatment of non-Jersey income)
- Exempt companies paid full income tax on their income arising from an established place of business in Jersey (see Offshore Legal and Tax Regimes for the treatment of other income)
- Jersey branches of foreign corporations paid full income tax on income arising in Jersey if they were managed and controlled outside the island; otherwise it was treated as a Jersey resident 'income tax' company.
NB: The 0/10% tax regime applies as from 2009.