Jersey paying agents retained and passed to the Comptroller of Taxes a total of £11.8 million of retention tax for the year 2009. This is in accordance with agreements entered into with each of the 27 EU member states on the taxation of savings income that individuals resident in the member states are receiving on deposits in the Island.
Under the terms of the agreements, 75% of the tax retained (£8.85 million) is sent to the individual member states and the remaining 25% (£2.95 million) is retained by the Treasury.
The tax sent to the member states and that retained by the Treasury is substantially less than for 2008, when the figures were £26.72 million and £8.91 million respectively. This is due to the very substantial reduction in interest rates following the global financial crisis.
EU Savings Directive retention tax distribution list
Year 2009 (distributed 30 June 2010) |
|
|
GBP |
EUR |
USD |
CHF |
Sterling total |
Austria |
2009 |
52,773 |
3,337 |
1,416 |
0 |
56,647 |
Belgium |
2009 |
117,362 |
21,400 |
2,467 |
331 |
138,186 |
Bulgaria |
2009 |
4,252 |
502 |
5 |
0 |
4,702 |
Cyprus |
2009 |
164,178 |
5,531 |
30,053 |
0 |
188,287 |
Czech Republic |
2009 |
22,105 |
3,961 |
422 |
0 |
25,900 |
Germany |
2009 |
291,228 |
32,888 |
10,311 |
9 |
327,093 |
Denmark |
2009 |
31,023 |
1,461 |
1,124 |
0 |
33,002 |
Estonia |
2009 |
240 |
0 |
0 |
0 |
240 |
Spain |
2009 |
769,103 |
48,223 |
16,983 |
2 |
822,884 |
Finland |
2009 |
12,724 |
114 |
228 |
0 |
12,971 |
France |
2009 |
655,705 |
52,289 |
89,150 |
8 |
759,169 |
Great Britain |
2009 |
4,524,845 |
289,887 |
280,302 |
4,566 |
4,964,539 |
Greece |
2009 |
128,950 |
76,447 |
63,890 |
69 |
237,832 |
Hungary |
2009 |
33,213 |
1,304 |
218 |
0 |
34,512 |
Ireland |
2009 |
218,668 |
13,111 |
10,396 |
3 |
236,977 |
Italy |
2009 |
283,745 |
21,791 |
6,980 |
0 |
307,541 |
Lithuania |
2009 |
829 |
14 |
5 |
0 |
844 |
Luxembourg |
2009 |
13,690 |
934 |
14 |
0 |
14,529 |
Latvia |
2009 |
2,075 |
44 |
41 |
0 |
2,140 |
Malta |
2009 |
178,958 |
2,790 |
12,031 |
0 |
189,122 |
Netherlands |
2009 |
140,782 |
28,722 |
4,186 |
0 |
169,023 |
Poland |
2009 |
31,322 |
3,326 |
540 |
0 |
34,628 |
Portugal |
2009 |
157,081 |
19,077 |
14,277 |
557 |
183,179 |
Romania |
2009 |
4,888 |
1,706 |
1,534 |
0 |
7,714 |
Sweden |
2009 |
88,553 |
6,165 |
3,522 |
2 |
96,290 |
Slovenia |
2009 |
2,091 |
7 |
0 |
0 |
2,097 |
Slovak Republic |
2009 |
2,001 |
190 |
348 |
0 |
2,397 |
|
|
7,932,384 |
635,221 |
550,443 |
5,547 |
8,852,445 |
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 to 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 of the European Union 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 Taxes 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 be transferred to the relevant member state within 6 months of the end of the tax year. For the first 3 years (July 2005 – July 2008) retention tax was at the rate of 15%; for the following 3 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 their member state of residence as an alternative to paying the tax. For the year 2009 those disclosing accounted for some 65% of the interest payments covered by the agreements with the member states (for 2008 the proportion was 57%).