Company distribution tax rules
Company distribution rules apply if you own more than 2% in a Jersey company at any point in the year.
Information from the company making the distribution
If you receive a distribution from a Jersey company you should receive a dividend voucher which includes the:
- gross amount of the distribution
- tax deducted from the distribution (if any)
- net amount of the distribution
Information that analyses the distribution showing the amount of the distribution you received broken down into 1 or more of the following categories:
- taxable under schedule D9
- taxable under schedule D3
- exempt under article 78
Filling out the return
If you’ve received a taxable distribution, enter the:
- name of the company that paid the distribution
- TIN of the company that paid the distribution
- type of distribution (D3 or D9 per the voucher)
- gross amount of the distribution (actual amounts not estimates)
- amount of tax deducted from the distribution (if any)
- amount of credit for tax not paid by deduction (if any)
If the distribution is your spouse or civil partner’s income tick the box (paper only).
Tick the box if ‘simple’ basis of taxation applies to the distribution.
Simplified basis of taxation
To avoid the calculations associated with the distribution rules you can elect to apply a ‘simplified’ basis of taxation. On this basis all distributions are fully taxable and no element can be exempt from tax.
An example of when this might be beneficial is a small trading company which distributes all its profits on an annual basis.
If you've elected to apply the simplified basis, the type of distribution will be ‘D9’ and you should also tick the ‘simple’ basis of taxation box.
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