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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

2007 retention tax payments made to the EU Member States

​Jersey paying agents retained and passed to the comptroller of taxes a total of £34.98 million of retention tax for the year 2007. 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. 

Under the terms of the agreements, 75% of the tax retained (£26.24 million) is sent to the individual member states concerned and the remaining 25% (£8.74 million) is retained by the comptroller of taxes.

Individuals whose interest income is subject to tax can, as an alternative to paying the tax, choose the alternative of voluntarily disclosing the amount of interest to their fiscal authorities. For 2007, 61,600 individuals opted for voluntary disclosure.

EU Savings Directive retention tax distribution list

Year 2007 (distributed 30 June 2008) 
    GBP EUR USD CHF Sterling total
Austria 2007 104,713  5,522  9,632  0 113,301
Belgium 2007 299,701 36,272 27,501 0 338,248
Bulgaria 2007 13,823 985 2,314  0 15,653
Cyprus 2007  463,962 4,658 247,469   0 590,747 
Czech republic  2007 70,400 3,874  36,866  0 91,463
Germany 2007  648,737  52,119  49,591  72  709,187
Denmark  2007  74,463  1,762  14,630  941 83,367
Estonia 2007  2,537  326  2,700 
Spain 2007  1,562,357  147,762  159,684  10 1,743,190
Finland 2007  40,910 1,862 1,088  0 42,727 
France  2007  1,553,222  121,564  229,946  25  1,751,234
Great Britain  2007  15,546,309  402,977  2,125,508  2,127  16,884,434 
Greece  2007  590,546  150,930  405,654 684 896,677
Hungary  2007  50,492 873  8,839  0 55,504
Ireland  2007  481,814  47,904 50,819  539,964
Italy  2007  537,293 29,633  78,666 596,853 
Lithuania  2007  6,111  1 2,094  7,158 
Luxembourg  2007  43,668 1,204 256  44,620 
Latvia  2007  2,911  97 16,990  11,463
Malta  2007  334,441  22,784  25,423  362,723 
Netherlands  2007  324,731  147,017 62,572  456,549 
Poland  2007  77,662 5,708 18,151  0 90,632 
Portugal  2007  409,645  49,977 73,903 542  480,968 
Romania  2007  15,436  2,197 6,258 20,065
Sweden 2007  277,310  8,414  26,038 296,070
Slovenia  2007  6,560  80  152  6,691
Slovak Republic  2007  5,000  18  4,088 0 7,054
    23,544,754  1,246,194  3,684,458 4,401  26,239,242 

Supplementary information

  1. 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 are exchanging information on savings income.
  2. 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.
  3. 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.
  4. 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) of the retention tax the rate of tax was 15%; for the following 3 years (July 2008 – July 2011) the rate was 20%; and thereafter the rate is 35%.
  5. The agreements with the 27 EU member states provide for the individuals subject to the retention tax to choose to opt for voluntary disclosure of information to the tax authorities of the member state of residence as an alternative to paying the tax. For 2006, 80,191 individuals opted for voluntary disclosure.
  6. For the year 2006, the amount remitted to EU member states was £21.9 million and some £7 million was retained by Jersey. Between 2006 and 2007 there was an increase in the payments of some 20% reflecting the increase in interest rates that occurred over the period. 
  7. As in 2006, some two-thirds of the total amount remitted has been to Great Britain. Also, as in 2006, the next 2 largest payments have been to France and Spain, together accounting for 13% of the total.  
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