Taxation of law firms (FOI)

​Request

A

Do law firms in Jersey pay corporation tax on their profits?

B

If so, how much tax were they liable for in 2017?

C

If not, why not?

Response

A and C

Law firms in Jersey are structured as partnerships. Partnerships are not companies and hence do not fall within the scope of Part 17 of the Income Tax (Jersey) Law 1961 which outlines specific rules relating to corporate income tax in Jersey. In particular partnerships are not within the scope of either the 0% tax rate or the 10% tax rate applicable to companies and hence law firm profits are subject to the standard rate of personal income tax of 20%.

B

As outlined in the answer to question A, law firms in Jersey do not pay corporate income tax. In addition, Revenue Jersey does not maintain an information set in relation to tax paid by law partnerships.