04 August 2009
Jersey paying agents retained and passed to the Comptroller of Income Tax a total of £35.62 million of retention tax for the year 2008. 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 (£26.72 million) is sent to the individual Member States concerned and the remaining 25% (£8.90 million) is retained by the Comptroller of Income Tax.
The collection of retention tax relies upon the cooperation of local paying agents. The Comptroller of Income Tax and the President of the Jersey Bankers’ Association are both happy that the process of exchanging information and the retention of tax is working very well.
The Treasury and Resources Minister, Senator Philip Ozouf, commented: “This shows that Jersey continues to honour the commitments that it entered into voluntarily in the agreements with Member States. This cooperation will continue in the future.”
Malcolm Campbell, Comptroller of Income Tax, said: “I am extremely grateful once again for all the cooperation and help received from the paying agents, in particular the banks, who bear the greatest burden.”
EUSD RETENTION TAX DISTRIBUTION LIST |
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YEAR 2008 DISTRIBUTED 30TH JUNE 2009 |
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GBP |
EURO |
US$ |
CHF |
STERLING EQUIVALENT |
AT |
Austria |
2008 |
126,000.40 |
9,250.11 |
4,513.34 |
0.00 |
135,784.72 |
BE |
Belgium |
2008 |
283,679.86 |
42,298.58 |
11,497.91 |
486.34 |
323,731.48 |
BG |
Bulgaria |
2008 |
16,318.22 |
978.84 |
535.01 |
0 |
17,394.58 |
CY |
Cyprus |
2008 |
305,324.03 |
8,190.40 |
150,899.46 |
0.00 |
393,274.66 |
CZ |
Czech Republic |
2008 |
58,217.58 |
12,737.86 |
10,979.42 |
0.05 |
74,292.78 |
DE |
Germany |
2008 |
791,593.96 |
70,273.59 |
32,226.93 |
38.66 |
864,842.80 |
DK |
Denmark |
2008 |
82,144.03 |
8,229.89 |
9,249.85 |
763.23 |
93,882.54 |
EE |
Estonia |
2008 |
2,608.71 |
0.00 |
18.20 |
0.00 |
2,618.53 |
ES |
Spain |
2008 |
1,951,507.24 |
175,123.93 |
93,523.39 |
376.18 |
2,141,292.15 |
FI |
Finland |
2008 |
21,199.92 |
1,256.74 |
157.81 |
0.00 |
22,283.45 |
FR |
France |
2008 |
1,684,290.13 |
162,446.41 |
205,299.39 |
50.21 |
1,924,168.93 |
GB |
Great Britain |
2008 |
14,246,143.21 |
861,793.43 |
1,226,074.04 |
36,946.57 |
15,610,991.21 |
GR |
Greece |
2008 |
1,131,774.17 |
425,149.00 |
306,883.83 |
950.18 |
1,635,623.70 |
HU |
Hungary |
2008 |
57,960.87 |
5,802.42 |
2,009.15 |
0.00 |
63,754.75 |
IE |
Ireland |
2008 |
553,831.29 |
48,391.45 |
38,276.22 |
0.00 |
612,932.40 |
IT |
Italy |
2008 |
681,473.48 |
59,999.54 |
31,688.83 |
18.13 |
746,251.84 |
LT |
Lithuania |
2008 |
4,858.69 |
30.11 |
35.03 |
0.00 |
4,901.52 |
LU |
Luxembourg |
2008 |
37,573.97 |
2,639.47 |
62.71 |
0.00 |
39,714.83 |
LV |
Latvia |
2008 |
4,330.37 |
195.50 |
4,687.75 |
0.00 |
7,015.77 |
MT |
Malta |
2008 |
407,265.00 |
19,043.18 |
13,291.63 |
19.46 |
429,576.79 |
NL |
Netherlands |
2008 |
389,021.12 |
228,249.87 |
29,376.76 |
0.00 |
586,199.83 |
PL |
Poland |
2008 |
67,319.35 |
5,024.78 |
129.69 |
0.00 |
71,381.07 |
PT |
Portugal |
2008 |
435,095.37 |
69,934.17 |
24,182.80 |
849.76 |
504,138.93 |
RO |
Romania |
2008 |
16,279.18 |
3,590.64 |
20,065.22 |
0.00 |
29,961.28 |
SE |
Sweden |
2008 |
333,068.13 |
19,198.52 |
18,111.11 |
11.11 |
358,100.33 |
SI |
Slovenia |
2008 |
8,894.32 |
39.13 |
88.44 |
0.00 |
8,973.15 |
SK |
Slovak Republic |
2008 |
5,123.07 |
7,678.28 |
3,273.74 |
0.00 |
12,989.97 |
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23,702,895.67 |
2,247,545.84 |
2,237,137.66 |
40,509.88 |
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Sterling equivalent |
23,702,895.67 |
1,785,466.98 |
1,207,436.12 |
20,275.22 |
26,716,073.99 |
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 for 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.
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 Income Tax 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 will be transferred to the relevant Member States within six months of the end of the tax year. For the first three years (July 2005 – July 2008) of the retention tax the rate of tax was 15%; for the following 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 the Member State of residence as an alternative to paying the tax. For the year 2008 those disclosing accounted for 57% of the interest payments covered by the agreements with the EU Member States (for 2007 the proportion was 55%).
For the year 2007, the amount remitted to EU Member States was £26.24 million and £8.47 million was retained by the Comptroller of Income Tax. Between 2007 and 2008 there was a small increase in the payments reflecting the increase in tax rate in July 2008 from 15% to 20% and offset by the reduction in average interest rates that occurred between the two years.
Some two thirds of the total amount remitted has been to Great Britain. The next two largest payments have been to France and Spain, together accounting for 13% of the total.
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