A total of £4.6 million has been sent to EU Member States in retention tax for the year 2011. Retention tax is applied by Jersey paying agents and passed to the Comptroller of Taxes in accordance with agreements entered into with each of the 27 EU Member States on the taxation of eligible savings income that individuals resident in the Member States are receiving from the Island.
Under the terms of the agreements, 75% of the tax retained (£4.6 million) is sent to the individual Member States and the remaining 25% (£1.5 million) is retained by the Treasury. The amount of tax retained in 2011 is 15% higher than in 2010 when £4 million was sent to the Member States and £1.3 million was retained by the Treasury. The increase reflects the fact that for the second half of 2011 a higher rate of retention tax applied
EU Savings Directive retention tax distribution list
| Year 2011 (distributed June 2012) |
|---|
|
|
GBP |
EUR |
USD |
CHF |
Sterling total |
| Austria |
2011 |
27,654 |
0 |
347 |
0 |
27,876 |
| Belgium |
2011 |
102,604 |
1,280 |
638 |
0 |
104,017 |
| Bulgaria |
2011 |
2,885 |
0 |
1,495 |
0 |
3,841 |
| Cyprus |
2011 |
55,842 |
0 |
12,191 |
0 |
63,636 |
| Czech Republic |
2011 |
7,721 |
0 |
30 |
0 |
7,740 |
| Germany |
2011 |
133,249 |
6,660 |
5,533 |
0 |
142,013 |
| Denmark |
2011 |
18,644 |
704 |
2,753 |
0 |
20,957 |
| Estonia |
2011 |
199 |
0 |
0 |
0 |
199 |
| Spain |
2011 |
293,887 |
21,362 |
34,606 |
0 |
332,773 |
| Finland |
2011 |
8,542 |
9 |
31 |
0 |
8,568 |
| France |
2011 |
322,763 |
15,632 |
105,412 |
0 |
402,425 |
| Great Britain |
2011 |
2,586,811 |
38,221 |
139,487 |
0 |
2,705,983 |
| Greece |
2011 |
113,850 |
6,847 |
58,504 |
0 |
156,628 |
| Hungary |
2011 |
13,461 |
171 |
23 |
0 |
13,609 |
| Ireland |
2011 |
137,397 |
9,692 |
12,076 |
0 |
152,722 |
| Italy |
2011 |
138,858 |
1,394 |
5,176 |
0 |
143,261 |
| Lithuania |
2011 |
2,322 |
0 |
72 |
0 |
2,368 |
| Luxembourg |
2011 |
11,867 |
86 |
0 |
0 |
11,935 |
| Latvia |
2011 |
1,596 |
0 |
16 |
0 |
1,606 |
| Malta |
2011 |
57,775 |
865 |
3,029 |
0 |
60,390 |
| Netherlands |
2011 |
47,885 |
14,061 |
2,169 |
0 |
60,305 |
| Poland |
2011 |
14,308 |
3,975 |
152 |
0 |
17,524 |
| Portugal |
2011 |
88,236 |
1,992 |
2,851 |
0 |
91,621 |
| Romania |
2011 |
4,127 |
0 |
16 |
0 |
4,137 |
| Sweden |
2011 |
51,402 |
5,704 |
4,797 |
0 |
58,945 |
| Slovenia |
2011 |
765 |
0 |
0 |
0 |
765 |
| Slovak Republic |
2011 |
1,705 |
9 |
94 |
0 |
1,772 |
| Total |
|
4,246,355 |
128,664 |
391,498 |
0 |
4,597,616 |
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 five 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 EU, Austria and Luxembourg are also applying a withholding tax. The remaining 25 Member States of the European Union are automatically exchanging information on savings income.
2. 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.
3. 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 was 20%; and thereafter the rate has been set at 35%.
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