Jersey: new economic substance requirements

On 23 October 2018, Jersey’s Minister for External Relations presented draft legislation that would introduce increased substance requirements on certain Jersey resident companies.

If approved, the measures would apply as from 1 January 2019 and affect Jersey resident companies with accounting periods commencing on or after that date that undertake “relevant activities.” Nine relevant activities would fall within the scope of the proposed rules. These are: banking, financing and leasing, intellectual property holding, fund management, shipping, headquarter activities, insurance and holding company activities and distribution and service centre business.

Jersey international taxes

VAT Control Statement has been in operation for almost three years. Did it prove itself in practice?

When the VAT Control Statement was introduced in 2016, many feared the changes that were linked to this new tax report. The transition to the VAT Control Statement that each VAT payer must provide along with the VAT return required a re-arrangement of systems, an adjustment of the accounting policies and an adjustment of the relations with business partners. Now, almost three years later, we can say that the VAT Control Statement partially met the expectations of the professional public. “First of all, we expected an acceleration in the course of inspections because the Tax Administrator has most of the data available from the VAT Control Statement and it was fulfilled,” said Jaroslav Beneš, director of the Tax Advisory team at Deloitte. 

14. 1. 2019