Tax amendment to bring Jersey in line with international practice

27 August 2010

An amendment to the income tax law will exempt some of the profits of eligible funds, their subsidiary companies and securitisation vehicles, from income tax.

The draft Income Tax (Amendment No 36) (Jersey) Law 201- is designed to bring Jersey’s tax law clearly into line with other jurisdictions, including Guernsey, which has a statutory exemption for funds.

Income derived from land and buildings in Jersey will continue to be taxed at 20%.

Most international territories that have developed fund and securitisation industries have specific tax regimes for funds and securitisation vehicles, which often specifically exempt the profits earned by such companies from tax.

The Minister for Treasury and Resources has lodged the amendment with the States for debate in December.