04 July 2008
The Chief Minister, Senator Frank Walker, today (4 July 2008) signed in Berlin with Parliamentary State Secretary and Deputy Minister in the Ministry of Finance, Nicolette Kressl and State Secretary of Foreign Affairs, Heinrich Tiemann of the Federal Republic of Germany, agreements on the Exchange of Information in Tax Matters (TIEA) and on Co-operation in Taxation Matters and the Avoidance of Double Taxation concerning certain Items of Income.
Senator Walker said “Through the signing of this Agreement, with the Federal Republic of Germany, we are jointly seeking to strengthen and broaden our mutual economic and trading relationship. We particularly welcome the public recognition of Jersey as a jurisdiction that is committed to complying with international standards of financial regulation, anti-money laundering, and combating the financing of terrorism.”
The Agreements are accompanied by a joint political declaration (as attached), which includes an assurance by Germany that Jersey will be fully and equally treated by the German authorities in common with other countries included in what is described as the community of nations committed to international cooperation and information exchange on tax matters.
This TIEA is the same as the previous ones signed by Jersey , in providing for the exchange of information only on request, which request has to be formulated in writing with the greatest detail possible.
The agreement will come into force only after the States have approved the necessary Regulations and ratified the Agreement, and when the Germans have completed their own domestic procedures.
Following the entry into force, Germany and Jersey will continue the dialogue to examine what measures could be adopted to further enhance and broaden their political and economic relationship, including the further clarification of elements of double taxation, discrimination and other undesired tax barriers.
Notes to Editors:
1) For more information please contact Colin Powell Adviser-International Affairs on 01534 440414 or
07797750734.
2) The political declaration is also available.
3) This is the third TIEA signed. Previous ones were with the USA in November 2002 and the Netherlands in June 2007.
4) The Agreement on Cooperation in Tax Matters and the Avoidance of Double Taxation with Respect to Certain Items of Income provides for occupational pensions to be taxable only in the country of residence of the recipient; payments made to students for their maintenance, education and training to be free of tax; and for the profits of associated enterprises to be treated as if they had been independent enterprises.
5) A A historic release on TIEAs is also available.
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