Reporting requirements for non-Jersey resident companies

A company incorporated in Jersey is resident in the Island for tax purposes unless:

the company is centrally managed and controlled in another jurisdiction where the highest rate of tax which may be applied to any part of its income is at least 10%
the company is accepted as being resident in that other jurisdiction by its tax authorities

A tax return will be rejected if a company claims that it's resident in a jurisdiction in which it cannot be resident under Jersey's law.

For example, it's impossible:

for a company incorporated in Jersey to be resident in a jurisdiction which does not have a corporate tax regime (such as the Cayman Islands)
for a company whose domestic laws do not allow a company formed in another jurisdiction to be considered tax resident there (such as the USA or Sweden)

Companies may be taxed on income earned overseas, such as rental income or income from a permanent establishment, but this does not mean that the company is no longer resident in Jersey.

A company which mistakenly identifies itself as being resident in another jurisdiction may not only complete its Jersey tax return incorrectly but may also fail to complete its economic substance return.

This can leave it open to enquiries from Revenue Jersey and incur penalties.

Certificates of residence

Further details on certificates of residence for the 2024 year of assessment will be published shortly.