Corporate tax return guidance notes: Section 1

​​​Question 1: Where is the entity resident?

You're required to declare where the entity is resident for tax purposes. 

This may be different from where it is incorporated.

• Select the country of residence from the drop down country list

A company is tax resident in Jersey if it meets the conditions in Article 123(1)(a) or Article 123(1)(b) of the Income Tax (Jersey) Law 1961.

Article 123 of the Income Tax (Jersey) 1961 on the Jersey Law website

Other types of unincorporated bodies and associations are tax resident if they are managed and controlled in Jersey.

For Jersey incorporated companies resident outside Jersey, copies of tax residence certificates​ should be attached in section 9 of the return. 

For 2023, the corporate tax return won't be regarded as incomplete if not provided. 

For further information, see 2023 reporting requirements for non-Jersey resident companies​.

Question 1a: Is the entity trading in Jersey through a branch or permanent establishment?

(This question will only appear if the place of tax residence in Q1 is not Jersey.)

In Article 3 of the Income Tax Law a “permanent establishment” in relation to a company includes:

• a branch of a company, a factory, shop, workshop, quarry, or a building site and a place of management of the company.

Other entities will have a permanent establishment if they have a fixed place of business. A fixed place of business includes a building site or a construction project.

• If the entity has a permanent establishment in Jersey you should answer yes
• If the entity does not have a permanent establishment in Jersey you should answer no

Question 2: What is the entity’s status?

Select the status or statuses which apply to the entity. If more than one status applies you should select each status which applies.

Foundation

Select this status if the entity is a foundation registered under the Foundation (Jersey) Law 2009.

Foundations (Jersey) Law 2009

Incorporated/unincorporated body, association or co-operative

Select this status if the entity is a body of persons other than a company or Jersey foundation. In Article 3 of the Income Tax Law a “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons whether corporate or not corporate.

Article 3 of the Income Tax (Jersey) Law 1961

Financial Services Company

Select this status if the entity is a company as described in Article 123D of the Income Tax Law.

Article 123D of the Income Tax (Jersey) Law 1961

Registered Pension Company

Select this status if the entity is a company that has been approved by the Comptroller under Article 131B of the Income Tax Law.

Article 131B of the Income Tax (Jersey) Law 1961

Company (other)

Select this status if the entity is a company.  This will include a company which is subject to tax at the rate of 0% in accordance with Article 123C(2) of the Income Tax Law. 

Article 123C(2) of the Income Tax (Jersey) Law 1961

Public Collective Investment Fund

Select this status if the entity is a company which is within the meaning of the Collective Investment Funds (Jersey) Law 1988 which holds a permit by virtue of being a functionary within group 1 in Part 2 of the Schedule to that Law.

Collective Investment Funds (Jersey) Law 1988

Private Collective Investment Fund/Eligible Investment Scheme

Select this status if the entity is a company which is either:

1. A fund which is not a Public Collective Investment Fund (above); or
2. Registered as an eligible investment scheme by the Comptroller under Article 118C of the Income Tax Law.

Large Corporate Retailer

Select this status if the entity is a company which is a large corporate retailer within the meaning of Article 123I of the Income Tax Law.

Article 123I of the Income Tax (Jersey) Law 1961

Trade of supply/importation of hydro carbons

Select this status if the entity is a company which has profits or gains chargeable at the standard rate from the trade of importation and / or supply of hydrocarbon oils within Article 123CAA(1) of the Income Tax Law.

Article 123CAA(1) of the Income Tax (Jersey) Law 1961

Charity

Select this status if the company is a charity registered under the Charities (Jersey) Law 2014.

Charities (Jersey) Law 2014

Intermediary Service Vehicle (ISV)

Select this status if the company is an ISV as defined in Article 77A of the Income Tax Law.

Article 77A of the Income Tax (Jersey) Law 1961

Utility Company

Select this status if the company is a “utility company” as defined in Article 123C(3).

Article 123C(3) of the Income Tax (Jersey) Law 1961

Exempt other

Select this status if the company is exempt from tax other than as a charity.

Note: A company which is subject to tax at the rate of 0% in accordance with Article 123C(2) of the Income Tax Law is not exempt from tax and should not select this status. 

Article 123C(2) of the Income Tax (Jersey) Law 1961

Company in the cannabis industry

Select this status if the company is in the cannabis industry in accordance with Article 123DA.

Article 123DA of the Income Tax (Jersey) Law 1961

Question 2a: Does the entity have an accounting date which ends in the year of assessment?

For companies that are incorporated in Jersey there is a legal requirement under the Companies (Jersey) Law 1991 (“the Companies Law”) to prepare accounts.

Companies (Jersey) Law 1991

Dormant or inactive companies

The Comptroller requires all companies which are resident in Jersey to prepare accounts. For the avoidance of doubt this requirement applies to companies which are considered to be dormant or inactive.

It is not acceptable for a company to answer no to question 2a on the basis that the company does not prepare any accounts.

For example

You should answer yes, if the entity has an accounting date which ends in the year of assessment. 

E.g. an entity prepares accounts for a period of 12 months up to 31 January 2022. The accounting date 31 January 2022 ends in the year of assessment 2022.

You should answer no, if there is no accounting date ending in the year of assessment.

E.g. an entity commences on 30 June 2022 and prepares accounts for a period of 18 months to 31 December 2023. There is no accounting date ending in the year of assessment 2022.

Normally accounts will consist of a period of 12 months. However it is permitted under both the Companies Law and the Income Tax Law to prepare accounts for a period not exceeding 18 months.

Generally a company will answer yes to question 2a unless it is commencing to trade or is changing accounting date.

Question 2b:  Are you a self-managed fund?

This question only appears if the entity is a Public Collective Investment Fund or Private Collective Investment Fund selected in question 2.

Where the entity has entered Yes to question 2b they are required to complete the Economic Substance questions in Section 7.

Question 3: Are you attaching your financial accounts / statements?

This question only appears if the entity is tax resident in Jersey.

• You are required to file your financial accounts / statements when filing the corporate tax return
  
• You will not be able to advance past Section 1 unless you are able to answer yes
  
• A PDF copy of the financial accounts/statements should be attached when you complete section 9
  

Question 3a: Are you attaching the financial accounts/statements for your branch or permanent establishment activity?

This question only appears if you have answered yes to 1a.

• You are required to file your financial accounts / statements when filing the corporate tax return
• You will not be able to advance past section 1 unless you are able to answer yes
  
• A PDF copy of the financial accounts / statements should be attached when you complete section 9
  

Question 3b: What is the nature of the entity’s activities?

You should give a short succinct description of the entities activities (e.g. plumber, bank, share transfer property holding etc.).

Question 3c: Enter the entity’s SIC code

The standard industry classification ("SIC") is a system for classifying business by the activity in which the business is engaged.

The SIC codes for entities not found in the examples below, can be found on the Nature of business: Standard Industrial Classification (SIC) codes on the Companies House website.

From the website identify the appropriate description of the activities of the entity.

Enter the 5 digit SIC code applicable to those activities of the entity in the box alongside Question 3c.

SIC code examples

Question 3d: Gross turnover in the attached financial accounts / statements

• You are required to enter the gross turnover of the entity. This the total turnover received by the entity as recorded in the financial accounts/statements
  
• Generally for a trading entity this is the amount derived from the provision of goods or services falling within the entity's ordinary activities
  
• For an investment holding company the gross turnover is taken to be the gross income from the investments of the company
  
• You should enter a positive whole number. Ignore pence. If there is no income at all then enter £0
  

For example:

Question 3e: Accounting profits or loss in the attached financial accounts/statements

• You are required to enter the amount of the accounting profit or loss of the entity as recorded in the financial accounts / statements. This is the profit or loss before taxes and dividends paid to members
  
• You should enter a whole number. Ignore pence
  
• If there is a loss enter a minus (symbol -) in front of the number
  

For example:

Question 4: Are you in receipt of income or premiums taxable under Schedule A?

Broadly income is taxable under Schedule A if it arises from:

1. rent or other receipts (including premiums) in respect of land in Jersey;
2. the trade of property development in Jersey; and
3. the trade of mining/quarrying in Jersey.

The full definitions of profits or gains chargeable under Schedule A can be found in Part 8 of the Income Tax Law.

• If the entity is in receipt of any income or premiums taxable under Schedule A you should answer yes
• If the entity is not in receipt of any income or premiums taxable under Schedule A you should answer no

Question 5: Does a Jersey resident individual ultimately own more than 2% of the ordinary share capital of the company?

The broad definition of ownership in Article 82A of the Income Tax Law applies when determining whether a Jersey resident individual ultimately owns shares in a company (ie it is necessary to look through any intermediate bodies to the ultimate individuals who have the beneficial ownership of the shares).

The ultimate owner of shares in a company will include an individual who:

• has direct ownership of shares
• owns shares in a company through the ownership of shares in another company or a series of companies
• owns shares in a company through a trust or a series of trusts
• owns shares in a company through a structure that may include companies, trusts or other corporate bodies.

If ultimately an individual resident in Jersey owns more than 2% of the ordinary share capital of the company you should answer yes.

If ultimately no individual resident in Jersey owns more than 2% of the ordinary share capital of the company you should answer no.