21 January 2009
The States have today ratified an historic agreement between Jersey and Germany, highlighting the mutual respect and co-operation between the two jurisdictions.
The Tax Information Exchange Agreement was signed in Berlin last July, when the Federal Republic of Germany issued a Political Declaration which welcomed Jersey “as a member of the community of nations committed to international co-operation and information exchange on tax matters” and which expressed the German government’s wish “to assure the Government of Jersey that Jersey will be fully and equally treated as such by the German authorities".
The agreement can officially come into force now the States have ratified the Agreement and made the necessary Regulations, once the German authorities have completed their own domestic procedures - expected in March/April.
The Chief Minister, Senator Terry Le Sueur, is delighted the agreement has now been ratified: “I am particularly pleased at this public recognition of Jersey’s commitment to international cooperation and information exchange on tax matters; and to complying with international standards of financial regulation, anti-money laundering, and combating the financing of terrorism.
“Last year the OECD Secretary General referred to the fact that Jersey has signed a number of Tax Information Exchange Agreements, and called for clear political recognition for those offshore financial centres that have made this kind of progress.”
This TIEA is the same as the previous ones signed by Jersey, in providing for the exchange of information only on request, which request has to be formulated in writing with the greatest detail possible.
Following the entry into force, Germany and Jersey will continue the dialogue to examine what measures could be adopted to further enhance and broaden their political and economic relationship, including the further clarification of elements of double taxation, discrimination and other undesired tax barriers.
Notes to Editors:
1) For more information please contact Colin Powell Adviser-International Affairs on 44 (0) 1534 440414 or 07797 750 734.
2) This was the third TIEA signed. Previous ones were with the USA in November 2002 and the Netherlands in June 2007. Jersey has since (in October 2008) signed a TIEA with the seven Nordic countries – Denmark, the Faroes, Finland, Greenland, Iceland, Norway and Sweden.
3) TIEA agreement with Germany and political declaration ratified today.
4) The Agreement on Cooperation in Tax Matters and the Avoidance of Double Taxation with Respect to Certain Items of Income provides for occupational pensions to be taxable only in the country of residence of the recipient; payments made to students for their maintenance, education and training to be free of tax; and for the profits of associated enterprises to be treated as if they had been independent enterprises.
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