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Jersey: Double Tax Treaties

Introduction

Until recently, Jersey did not normally enter into tax treaties as a matter of policy; for some time double taxation agreements existed only with the United Kingdom and Guernsey, and a limited agreement with France exempting a resident of either country from tax in the other country on profits from shipping and air transport.  

However, in response to the growing demands of the OECD and its member governments for greater fiscal transparency, Jersey has been keen to foster an image as a reputable international finance centre and has begun to sign more tax treaties, and agreements for the exchange of tax information.

In addition to the DTAs with the UK and Guernsey and the limited agreement with France, Jersey has entered into tax treaties with Malta, Estonia, Hong Kong, Qatar, Singapore, Guernsey, Isle of Man and Luxembourgh. Negotiations towards a DTA were ongoing with Bahrain, Cyprus, Mauritius, Saudi Arabia and the Seychelles in August, 2013.

Jersey has signed 28 bilateral Tax and Information Exchange Agreements, including with Austria, France, the UK, Germany, Sweden, Norway, Iceland, Greenland, Finland, the Faroe Islands, Denmark, the Netherlands, Ireland, Australia, New Zealand, the United States, Portugal, China, Turkey, Mexico, Canada, Indonesia, Turkey and Japan. The agreements with Brazil, Latvia, Italy and Indonesia are expected to come into force in the second half of 2013.

Agreements initialled and ready for signing include those with Belgium, Chile, Greece, Republic of Korea, Slovenia, Spain and Switzerland. Furthermore, draft agreements have been exchanged with Bulgaria, Hungary, Kenya, Lithuania, Romania and Slovakia.

Ahead of the signing of the TIEA with the UK in March 2009, Jersey’s Chief Minister, Terry Le Sueur said: “We are particularly pleased to have Jersey recognised by the UK as a member of the community of jurisdictions committed to international co-operation and information exchange on tax matters, and to have their assurance that Jersey will be treated as such by the UK authorities.”

In its progress report on the implementation of the internationally agreed tax standard, issued in conjunction with the G20 London Summit of April 2, 2009, the OECD listed Jersey as a jurisdiction that has “substantially implemented” said standard and thus the jurisdiction gained a place on the Organization’s ‘white list’ of compliant jurisdictions.

 

 

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