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Jersey: Domestic Corporate Taxation

Taxation of Trusts

In the normal trust situation, ie with settlor, life tenants and beneficiaries all being non-resident, full exemption from Jersey taxation was given to foreign income and Jersey bank interest, by concession. This exemption was automatic, and did not need to be applied for.

However, if any of the settlor, the life tenants or the beneficiaries were Jersey-resident, the tax picture became more complex, and exemption from Jersey tax was partial, at best; however if only the settlor was Jersey-resident, full exemption could be available on application to the Comptroller, subject to stringent conditions. If tax was due on a Jersey trust, then it was assessed on the trustee; a non-resident trustee would however be assessed only on income arising in Jersey.

Unit trusts were treated in the same way as other trusts; the existence of Jersey unit-holders did not affect exemption, subject to some conditions.

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



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