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Key Information

This page offers a useful guide to tax and contributions in Jersey from personal tax to corporate tax and GST. This information is also available in PDF format upon request by emailing locatejersey@gov.je.  If you would like to know more about tax and contributions in Jersey or you would like to know more about moving to Jersey, get in touch with a member of the team by email or call us on +44(0)1534 440604.

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A quick guide to tax and contributions in Jersey

The table below offers a quick guide to taxes and contributions in Jersey.

Table: Taxes and contributions in Jersey *All rates are subject to review and may change on an annual basis. For up-to-date information please visit www.gov.je

 

Personal tax and contributions

 

Personal Tax*

The standard rate of tax in Jersey is 20%. This is the maximum personal income tax you will pay in a year. Your tax is based on your total income but takes into account any allowances and reliefs you are eligible for. This rate also applies to the tax adjusted profits of sole traders and partnerships.

There are no higher rate bands, Capital Gains Tax or Inheritance Tax.

If you are an employee or a company director receiving a salary/fees you will have a regular deduction from your salary. This is called the Income Tax Instalment System (ITIS). You will receive an effective rate which shows your tax rate (as a percentage). This percentage is deducted from your gross pay every time you are paid.

If you are in receipt of other sources of income you will be required to settle your tax liability on a payment on account basis.

The tax year in Jersey is the calendar year. You will be issued with a personal tax return form in the January following the tax year end. Based on the information you provide within that tax return form, you will receive an income tax assessment and be advised of any further tax liability.

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je

 

Tax and High Value Residency (HVR)

Individuals who qualify under Regulation 2(1)(e) of the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013, are able to access the following tax rates.

The tax rates that apply are:

  • 20% on the first £725,000 of all other income
  • 1% on any income above that level
  • 20% on any income earned from land and buildings in Jersey, or dividends paid from a company in receipt of Jersey property income

There is an annual minimum personal income tax contribution of £145,000 (this amount is subject to review in 2023).

When applying for High Value Residency, you must be able to demonstrate comfortable and sustainable wealth and sufficient taxable income to generate the annual minimum personal income tax contribution every year.

The tax administration for a High Value Resident is the same as for other taxpayers.

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je

 

Long-Term Care Contribution*

The Long-Term Care (LTC) scheme provides financial support to Jersey residents who are likely to need long-term care for the rest of their life, either in their own home or in a care home.

A separate Long-Term Care fund has been set up to help those who need long-term care. Everyone who pays income tax pays into the Long-Term Care fund.

The rate is currently 1%. This is capped at the Social Security Upper Earning Limit £14,686 per month**. Your contribution is based on your total income but will take into account any allowances and reliefs you benefit from for tax purposes, so most people will pay less than 1%.

Your contribution is calculated by the Taxes Office and is collected in the same way as your income tax. There are no extra forms and the amount is shown separately on your tax bill.

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je  

** The Upper Earning Limit increases annually by the value of the average earning index as of 30th June of the previous year.

 

Social Security Contribution*

Contributions are payments that employees and employers make by law, they are split into Class 1 and Class 2.

Class 1 liability relates to employed contributions which are split between employee and employer.

Class 2 liability is basically the absence of employed contributions i.e. self-employed, non-employed, etc.

Social security contributions go towards contributory benefits such as:

  • Short-term Incapacity Allowance
  • Long-term Incapacity Allowance
  • Maternity Benefit
  • Home Carers Allowance
  • Old Age Pension/Survivors Allowance and Death Grant

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je   

 

Who must pay contributions

You’re liable to pay contributions if you are:

  • living in Jersey
  • over 16 (if working)
  • between 18 and pension age

This means that you’re liable for contributions even if you are:

  • studying
  • looking after a family
  • not working

If individuals are liable for only Class 2 contributions and have an income of below £17,768 (as at 1 Jan 2019) they may qualify for Low Income Relief (making them exempt from paying on the basis of a low income). The low income relief will leave a gap in their record and will not protect their entitlement for pension and benefit purposes. People who are newly self-employed can also take the option of a ‘Start Up Plan’ rate, giving them a lower rate which will be reviewed two years from application.

If you haven’t been registered in Jersey before and you don’t work for an employer, you don’t have to pay contributions straight away.

Once you have been in the Island for six months you’ll have to start contributing.

If you’ve already been registered in Jersey previously you’ll be liable for contributions as soon as you arrive in the Island.

 

Class 1 and Class 2 contributions*

CLASS 1

You pay Class 1 contributions if you are employed for eight hours or more per week, based on how much you earn.

6% is deducted from your wage each month (capped at £266.52 in 2019) and 6.5% is paid to the States of Jersey by your employer (on earnings up to £4,290 per month, plus an additional 2% on earnings over £4,442 and under £14,686 per month*). You have to meet the lower earnings threshold of £940 (in 2019) to cover your Class 1 liability in full for pension and benefit purposes.

This contribution stops at pension age.

CLASS 2

You pay Class 2 contributions if you’re not employed. This includes people who are:

  • self-employed
  • students
  • looking after a family
  • not working

The maximum rate is 12.5% (capped at £760.13 per month for 2019). The amount you pay is worked out from your total income two years previously and rates vary depending on your total income and circumstances. Depending on your circumstances (i.e. studying or looking after young children) you may be able to apply for contribution credits which protect your Social Security record. They also protect your entitlement to certain benefits.

Full information about Social Security contributions is available here.

For more details about registering for Tax and Social Security as a Jersey resident please click here.

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je  

 

Corporate income tax

The standard rate of corporate income tax in Jersey is 0%. The exceptions to this standard rate are:

  • certain regulated financial service companies (as defined in the Income Tax Law) which are taxed at 10%
  • utility companies which are taxed at 20%
  • retailers in Jersey (with retail turnover of £2m and above) where tax is charged: 1) at 0% where profits are less than £500k; 2) on a sliding scale from 0% to 20% where profits are between £500k and £750k: and 3) at 20% where profits exceed £750k
  • Income specifically derived from trading in Jersey from: 1) the importation and/or supply of hydrocarbon oils; 2) quarrying; 3) property development; and 4) property rental, is also taxed at 20%.

The tax year is the calendar year (‘the year of assessment’). The basis upon which trading income is charged to tax is the accounting period ending in the year of assessment.

All companies are required to file an annual tax return. The company tax returns are completed on-line and must be submitted by 31 December in the year following the year of assessment. The information a company is required to provide on the tax return is dependent on the circumstances of each company.

Companies which are subject to a positive rate of tax will receive an annual notice of assessment in the year following the year of assessment. Tax which is due is payable immediately. There is a surcharge penalty of 10% in respect of any tax which is not paid by early December of the year following the year of assessment.

For more details about Jersey’s corporate income tax, click here

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je  

 

BEPS 

In June 2017, the Jersey Government signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) (Paris, 24.11.206).  In doing so, the Island has further demonstrated our internationally recognised leading position in complying with the international standards on financial regulation, anti-money laundering and tax transparency and information exchange. Jersey is fully supportive of the BEPS project and is active in implementing the actions making up the project.)

 

Goods and Services Tax (GST)*

The Goods and Services Tax (GST) is a tax on sales of goods and services supplied in Jersey for local use, including imports.

There are three categories under GST, and all goods and services are placed into one of them:

  • standard-rated
  • zero-rated
  • exempt

It is collected at each stage of production, manufacture, distribution and sale, where the supplier is registered for GST, click here for more information.

 

Strandard-Rated

These are goods and services that are taxed at a standard rate (5%) of their total value at the point of sale. Almost all goods and services provided in Jersey (including goods purchased online that are worth £240 or more – including freight) attract GST at the standard rate.

Examples include:

  • goods that you buy from a shop
  • food and drink from a restaurant or bar
  • rented or hired goods, such as a car or equipment
  • services, such as hairdressing or hotel accommodation
  • imported goods that you buy online

There are two types of goods and services that aren’t standard rated: zero-rated and exempt supplies.

Zero-Rated

These are taxed at 0%. Examples include:

  • exports of goods
  • housing
  • medical prescriptions
  • international services

Exempt

These are not taxed for public policy reasons, or because they are difficult to tax accurately. Examples include:

  • financial services
  • insurance
  • postal services
  • medical and paramedical supplies made by registered professionals or institutions
  • supplies by charities

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je  

 

GST for Customers*

FAQ - Is GST collected on goods I buy online or overseas and have couriered into Jersey?

Yes, you must pay GST on all goods worth £240 or more (including freight costs). You have 3 days from when the goods arrive in Jersey for you or your supplier to declare the value and pay any GST owed. Any goods you import by freight are detained by the shipper until you pay the duty. If you don’t not pay within 3 days this will significantly affect how long it takes to clear your goods through Customs.

Three different duties and taxes are collected on imported goods:

  1. Excise duty on alcohol, tobacco and fuel
  2. Common Customs Tariff (CCT). This is charged on all goods imported from outside the European Union (EU). To find out how much you will need to pay visit Trade Tariff
  3. GST (5%) on the combined value. If the combined value of your goods is over £240, you must declare and pay the GST and any excise duties (if applicable).

This includes:

  • the purchase price/goods value at import
  • commission, packing and freight
  • all taxes and duties applied before and on arrival, such as VAT, CCT and excise

If you order multiple items that arrive as one shipment on the same day, this is treated as a single delivery for customs duty purposes.

Full information on importing goods and paying duties and taxes is available here.

 

FAQ - Do I have to declare items that I have purchased outside of Jersey and which I am bringing back in my luggage?

If you’re on a commercial flight or ferry and the total import value of the goods is £390 or more then go to Customs’ ‘red point’ at the port and speak to an officer. If you’re on a private flight or ferry and the total import value is more than £270 then make a voluntary declaration.

 

FAQ - Do I have to pay GST and duty if I buy a car from outside of Jersey and ship it over?

If you import a vehicle from within the EU, you’ll need to pay GST at 5% on the value of the vehicle at import. This includes all freight charges and insurance costs.

If you import a vehicle from outside the EU, you’ll need to pay GST at 5% and the Common Customs Tariff (CCT). To check duty rates click here.

You will not be able to register the vehicle with Driver and Vehicle Standards (DVS) until Customs have cleared the vehicle and you’ve paid the relevant duties (e.g. Vehicle Emissions Duty).

 

FAQ - Do I get charged GST on the VAT I pay on goods imported from the UK?

Yes, VAT is considered part of your goods’ total value, and you must pay GST on the total value to have the good released from Customs. If you can show that the VAT has been refunded to you, the GST on the VAT will also be refunded.

 

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je  

 

GST for businesses*

You must register for GST if:

  • your business has made taxable supplies of £300,000 or more in the preceding 12 months. (Taxable supplies include goods and services that are taxed at both the standard and the zero-rate for GST - if the turnover from these goods and services was £300,000 then you should register)
  • there are reasonable grounds to believe that the value of your taxable supplies in the coming 12 months is likely to exceed £300,000

 

FAQ - I only make sales of goods that are zero-rated, can I apply to be exempt from GST?

Yes, If your company only makes zero-rated sales, you can apply to be exempt from registering for GST. If your company is exempted from registering, you won’t be required to complete GST returns or charge GST on the supplies you make. However, you won’t be able to recover any input tax or import tax that you are charged by other companies.

 

FAQ - I only make sales of goods that are exempt from GST, do I need to be registered?

No, if the only supplies of goods or services you make are exempt, you don’t need to register for GST.

If you have an established business in Jersey which makes supplies of less than £300,000 in any 12 months, you can apply for voluntary registration.

Being registered voluntarily means you can recover any GST you incur on purchases and expenses for your business. You will, however, have to charge GST on the supplies you make and maintain books and records. Before you apply for voluntary registration, you should carefully consider whether it will be beneficial to your business and discuss it with a professional tax advisor.

More information is available here.

* All rates are subject to review and may change on an annual basis. For up-to-date information visit www.gov.je

 

 

Useful contacts

 

Contact Customer and Local Services for all enquires regarding:

  • Income Tax
  • Passport, Customs & Immigration
  • Planning & Building Services
  • Social Security Contributions
  • Treasury & Cashiers

T: +44 (0)1534 445505

E: customerservices@gov.je

Philip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE

 

Business Tax Helpline

T: +44 (0)1534 440300

E: bustax@gov.je

 

Business GST Help Desk

T: +44 (0)1534 440555

E: gst@gov.je

“Ultimately, choosing Jersey was not just a business decision, it was a family one”

Andrew Benitz, CEO Jersey Oil & Gas