Jersey, Channel Islands
The tax year is the calendar year. Companies are assessed on income earned in respect of the financial year that ends within the applicable calendar year of assessment.
The system relies on the filing of a return of information with the Jersey tax authority, which then raises an assessment (in the case of companies taxed at 10% or 20% on all or part of their income).
The 2019 tax return form included a number of changes from the previous year. These changes were required for the full implementation of economic substance rules and to collect the additional data needed by the government of Jersey to maintain and improve levels of tax compliance. For the 2019 tax return and subsequent periods, all companies will be required to submit an electronic copy of their accounts alongside their company tax return.
There is a filing deadline for the corporate return of midnight on 30 November following the year of assessment and a late filing penalty of GBP 300. Where a return remains outstanding after three months, a penalty of GBP 100 will be imposed every month the return remains outstanding, up to a maximum of nine months.
Jersey resident partnerships, as defined under the economic substance regime, will be required to file a 'combined notification' with effect from the 2022 year of assessment, due on 30 November following the year of assessment. The combined notification requires declarations in respect of tax and economic substance.
Prior to the 2022 year of assessment, the corporate tax filing deadline was 31 December following the year of assessment.
Payment of tax
For companies, tax is payable in arrears during the calendar year following the year of assessment.
The Jersey tax payment system changed with effect from the 2019 year of assessment. For the first time, a separate category of payment dates was set for large remitters. A large remitter is broadly defined as a company whose tax liability exceeds GBP 500,000 for each of the two years preceding the year of assessments in respect of which the payment is being made. An instalment payment is required by 31 March and the balance is due by 30 September (in the year following the year of assessment).
All other companies are required to make an instalment payment by 31 May, and the balance is due by 30 November (in the year following the year of assessment).
Tax paid late will be subject to interest and a late payment surcharge.
Tax audit process
There is no formal tax audit process in Jersey.
Statute of limitations
If the Comptroller discovers profits have not been fully assessed, the Comptroller can issue an amended/additional assessment at any time not later than two years after the expiration of the year of assessment. If the error involves fraud, wilful default, or neglect, then the assessment can be revised at any time.
Topics of focus for tax authorities
The Jersey Taxes Office is currently focusing on tax compliance reform.