Jersey, Channel Islands
Goods and services tax (GST)
The standard rate of GST is 5%.
Companies with taxable supplies of more than GBP 300,000 per annum are required to register for GST.
From 1 July 2023, where retailers trading outside Jersey sell goods to consumers in Jersey (online, through brochures, magazine sales, or others) and where the value of such sales by any retailer to consumers in Jersey exceeds GBP 300,000 per annum, such retailers will have to register and account for Jersey GST on all these sales.
International service entity (ISE) status
To address the difficulty of irrecoverable input tax in the financial services sector, and to mitigate the administrative cost of GST for exporters in general, Jersey has introduced the concept of an ISE. Where an entity qualifies for this status:
- it will not be required to register for GST
- services to it will be zero-rated (i.e. treated as an export) where the supply exceeds GBP 1,000, and
- input tax on purchases of less than GBP 1,000 may be reclaimed.
ISE status is automatically available to a wide variety of service providers and administered entities based in Jersey, upon application and payment of the relevant fee, including licensed banks, licensed trust service providers, licensed fund administrators, fund managers, and managed managers.
Other entities not automatically eligible under one of the categories above, including companies, partnerships, trusts, unrecognised funds, and special purpose vehicles, may still obtain ISE status if they fulfil certain criteria.
The ISE may, at the election of the company, be included on a list maintained by the Comptroller of Revenue. The list will refer either to the entity itself or (e.g. for administered entities) a class of entities as submitted by the administrator.
A common customs tariff may apply to goods imported from outside the European Union (EU), the United Kingdom (UK), Guernsey, or the Isle of Man. The amount is dependent on what the goods are and where they are imported from.
An excise duty tax is payable on imported items, such as alcohol, tobacco, and fuel, at varying rates.
Taxes on properties in Jersey include income tax on Jersey-source property income, stamp duty on Jersey real estate, and rates levied by each parish.
Enveloped Property Transaction Tax (EPTT)
EPTT came into force on 4 April 2022.
This is the tax equivalent to stamp duty on the transfer of property that is 'enveloped' (e.g. held within a company), and the rate of EPTT charged will align with the rate of tax charged under the Stamp Duty Law.
EPTT is levied on the transfer of a significant interest in immovable residential or commercial enveloped properties in Jersey, and the scope includes where the property is owned outright or where it is held under a contract lease.
There are a number of thresholds and exemptions that apply, including where a transaction has been subject to land transaction tax (see below).
Stamp duty is payable on the purchase or transfer of Jersey real estate, with varying rates. Mortgages secured by a charge over Jersey real estate are subject to stamp duty at rates of up to 0.5% of the amount borrowed. Higher rates of stamp duty apply on the purchase of Jersey residential properties that are not a person's 'main residence'.
No stamp duty is payable on the transfer of shares except in certain circumstances where those shares confer a direct or indirect interest in Jersey real estate.
Land transaction tax
A land transaction tax applies when shares in companies are transferred and the ownership of which confers a right of occupation of residential real estate in Jersey. The amount of land transaction tax payable is equal to the stamp duty that would have been suffered if the real estate were held directly.
Employers are required to deduct tax from salaries paid to employees and remit this to the tax authority to settle the employees’ tax liability. Under the Income Tax Instalment System (ITIS), the tax authority issues each employee with an effective rate notice to pass to their employer indicating the deduction rate. If no such notice is provided, the default rate of deduction applied is 22%.
Social security contributions
Employers are responsible for paying employer social security contributions at a rate of 6.5% on each employee’s gross earnings, up to the monthly standard earnings limit of GBP 5,450 for 2024 (GBP 5,060 for 2023). Employer social security contributions of 2.5% apply to employees’ earnings above the standard earnings limit, up to a monthly upper earnings limit of GBP 24,850 for 2024 (GBP 23,072 for 2023).
A long-term care fund has been set up to help those who need long-term care.
Income taxpayers pay into this fund with a long-term care contribution. Those not liable for income tax do not have to pay the contribution.