OECD - JERSEY’S TAX REGIME “NOT HARMFUL”
Jersey’s domestic laws have been given a further endorsement and its tax regime deemed ‘not harmful’ by the Organisation for Economic Co-operation and Development’s (OECD) Forum on Harmful Tax practices (FHTP).
In March 2019 the EU Finance Ministers (ECOFIN) formally confirmed Jersey’s position as a cooperative jurisdiction and that new substance legislation introduced earlier this year successfully met the requirements of the EU Code of Conduct Group. You can read more about the ECOFIN decision here.
Further to that decision, in July 2019, the FHTP carried out a review of recent changes to local legislation (including the introduction of substance laws) as part of a larger review of the domestic laws of 11 jurisdictions and have confirmed that the Island’s legal framework is in line with the relevant standard and is therefore ‘not harmful’.
What is Economic Substance?
Substance refers to businesses having a physical presence on the Island and is aimed to prevent offshore structures attracting profits which don’t reflect the actual economic activity in the jurisdiction.
Economic substance requires certain businesses to have a physical presence on the Island.
If you would like to read about the ECOFIN inspection you can do so in our article ECOFIN Finds Jersey to be a Cooperative Jurisdiction.
If you would like to know more about economic substance, or the other international standards Jersey adheres to, you can find out more on our web page Meeting International Standards.
...If you would like to know more about moving your business to Jersey or relocating as a High Value Resident, get in touch with a member of the Locate Jersey team today by calling us on +44(0)1534 440604 or by emailing us at email@example.com. You can also find out more information about moving to Jersey on our Key Information pages.
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