2023 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

Revenue Jersey requests a certificate of residence is submitted with the corporate tax return if a Jersey-incorporated company is claiming residence outside Jersey.

For 2023, if a certificate of residence is not provided, the corporate tax return won't be regarded as incomplete.

Revenue Jersey will conduct random checks on companies that do not provide evidence demonstrating they are not resident in Jersey under Jersey law.

We acknowledge that many companies have made efforts to obtain certificates of residence (or in the case of UK, a letter of confirmation of residence) from the tax authority concerned to support their non-Jersey resident status.

We can confirm certificates of residence, or similar documentation, obtained in support of a company's 2023 return will also be valid for the 2024 tax return, provided the company remains tax resident in that other jurisdiction in 2024.