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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

2008 retention tax figures released

04 August 2009

​​Jersey paying agents retained and passed to the Comptroller of Income Tax a total of £35.62 million of retention tax for the year 2008.  This is in accordance with agreements​ e​ntered into with each of the 27 EU Member States on the taxation of savings income that individuals resident in the Member States are receiving.

Under the terms of the agreements, 75% of the tax retained (£26.72 million) is sent to the individual Member States concerned and the remaining 25% (£8.90 million) is retained by the Comptroller of Income Tax.  

The collection of retention tax relies upon the cooperation of local paying agents. The Comptroller of Income Tax and the President of the Jersey Bankers’ Association are both happy that the process of exchanging information and the retention of tax is working very well.

The Treasury and Resources Minister, Senator Philip Ozouf, commented: “This shows that Jersey continues to honour the commitments that it entered into voluntarily in the agreements with Member States. This cooperation will continue in the future.”  

Malcolm Campbell, Comptroller of Income Tax, said: “I am extremely grateful once again for all the cooperation and help received from the paying agents, in particular the banks, who bear the greatest burden.” 


EUSD RETENTION TAX DISTRIBUTION LIST

 

 

 

 

YEAR 2008 DISTRIBUTED 30TH JUNE 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GBP

EURO

US$

CHF

STERLING EQUIVALENT

AT

Austria

2008

126,000.40

9,250.11

4,513.34

0.00

135,784.72

BE

Belgium

2008

283,679.86

42,298.58

11,497.91

486.34

323,731.48

BG

Bulgaria

2008

16,318.22

978.84

535.01

0

17,394.58

CY

Cyprus

2008

305,324.03

8,190.40

150,899.46

0.00

393,274.66

CZ

Czech Republic

2008

58,217.58

12,737.86

10,979.42

0.05

74,292.78

DE

Germany

2008

791,593.96

70,273.59

32,226.93

38.66

864,842.80

DK

Denmark

2008

82,144.03

8,229.89

9,249.85

763.23

93,882.54

EE

Estonia

2008

2,608.71

0.00

18.20

0.00

2,618.53

ES

Spain

2008

1,951,507.24

175,123.93

93,523.39

376.18

2,141,292.15

FI

Finland

2008

21,199.92

1,256.74

157.81

0.00

22,283.45

FR

France

2008

1,684,290.13

162,446.41

205,299.39

50.21

1,924,168.93

GB

Great Britain

2008

14,246,143.21

861,793.43

1,226,074.04

36,946.57

15,610,991.21

GR

Greece

2008

1,131,774.17

425,149.00

306,883.83

950.18

1,635,623.70

HU

Hungary

2008

57,960.87

5,802.42

2,009.15

0.00

63,754.75

IE

Ireland

2008

553,831.29

48,391.45

38,276.22

0.00

612,932.40

IT

Italy

2008

681,473.48

59,999.54

31,688.83

18.13

746,251.84

LT

Lithuania

2008

4,858.69

30.11

35.03

0.00

4,901.52

LU

Luxembourg

2008

37,573.97

2,639.47

62.71

0.00

39,714.83

LV

Latvia

2008

4,330.37

195.50

4,687.75

0.00

7,015.77

MT

Malta

2008

407,265.00

19,043.18

13,291.63

19.46

429,576.79

NL

Netherlands

2008

389,021.12

228,249.87

29,376.76

0.00

586,199.83

PL

Poland

2008

67,319.35

5,024.78

129.69

0.00

71,381.07

PT

Portugal

2008

435,095.37

69,934.17

24,182.80

849.76

504,138.93

RO

Romania

2008

16,279.18

3,590.64

20,065.22

0.00

29,961.28

SE

Sweden

2008

333,068.13

19,198.52

18,111.11

11.11

358,100.33

SI

Slovenia

2008

8,894.32

39.13

88.44

0.00

8,973.15

SK

Slovak Republic

2008

5,123.07

7,678.28

3,273.74

0.00

12,989.97

 

 

 

23,702,895.67

2,247,545.84

2,237,137.66

40,509.88

 

 

 

 

 

 

 

 

 

 

Sterling equivalent

23,702,895.67

1,785,466.98

1,207,436.12

20,275.22

26,716,073.99



Supplementary Information

When the EU Member States implemented, with effect from 1 July 2005, a Directive on the Taxation of Savings Income, Jersey, in common with a number of other dependent or associated territories of the Member States and 5 European Third Countries (Andorra, Liechtenstein, Monaco, San Marino and Switzerland) agreed to support the European Union by applying a withholding/retention tax for savings income arising in the Island, the beneficial owner of which is an individual who resides in a Member State. Within the European Union, Austria, Belgium and Luxembourg are also applying a withholding tax. The remaining 24 Member States are exchanging information on savings income.

To give effect to their support for the EU initiative, the States of Jersey enacted the Taxation (Agreements with European Union Member States) (Jersey) Regulations 2005.

Under these Regulations, the Comptroller of Income Tax is appointed as the Competent Authority for the collection of the tax and its remittance to the relevant Member States.

The Regulations provide that tax retained in respect of each year will be transferred to the relevant Member States within six months of the end of the tax year. For the first three years (July 2005 – July 2008) of the retention tax the rate of tax was 15%; for the following years (July 2008 – July 2011) the rate is 20%; and thereafter the rate will be 35%.

The agreements with the 27 EU Member States provides for the individuals subject to the retention tax to choose to opt for voluntary disclosure of information to the tax authorities of the Member State of residence as an alternative to paying the tax.  For the year 2008 those disclosing accounted for 57% of the interest payments covered by the agreements with the EU Member States (for 2007 the proportion was 55%).

For the year 2007, the amount remitted to EU Member States was £26.24 million and £8.47 million was retained by the Comptroller of Income Tax.  Between 2007 and 2008 there was a small increase in the payments reflecting the increase in tax rate in July 2008 from 15% to 20% and offset by the reduction in average interest rates that occurred between the two years.

Some two thirds of the total amount remitted has been to Great Britain. The next two largest payments have been to France and Spain, together accounting for 13% of the total.

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