Tax Haven Jersey

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Tax haven Jersey is an international financial centre that caters to the corporate and private needs of professionals employed abroad, expatriates, business men and investors. Jersey has proven itself a notable jurisdiction for banking and investing due to the advantages that it offers as a politically and economically stable country, is endowed with a strong regulatory framework and a domestically based professional work force.

Country Overview

Tax haven Jersey is formerly called the Bailiwick of Jersey. The country is a dependency of the Britain and belongs to the group of islands off the Normandy coast known as the Channel Islands. Tax haven Jersey’s judiciary system is based on that of the British and Norman customary law and the legislature is formed by the parliament, known as the States of Jersey – a combination of 53 elected members.

Jersey’s economy is mainly based on activities such as banking, tourism and financial services. The main products of Jersey are potatoes and dairy, which is sourced domestically from a breed of cows that are known for the quality of their meat. Meanwhile, efforts are being made to expand the agricultural sector in the area of organic beef production.

Tax haven Jersey has a population of about 91,626 and the GDP is estimated at £3.6 billion based on 2003 figures, with a GDP per capita of USD $57,000 according to the CIA World Fact Book. Jersey has two official languages (French and English) and the currency used is the Pound sterling (GBP). Tax haven Jersey’s religious background is diverse and complex, consisting primarily of a combination of Methodist, Church of England and Catholic followers.

Jersey Fiscal Incentives and Advantages

As a tax haven, Jersey is well positioned as a near shore jurisdiction for accessing markets in Europe. Being a British Isle but not part of the UK and EU allows tax haven Jersey to benefit from various privileges and rights granted by the Crown for its loyalty. Tax haven Jersey legislative framework stimulates business competitiveness and investment. Here is a list of advantages that tax haven Jersey offers:

  • Tax neutral regime (Zero-ten corporation tax as of 2009)
  • Zero tax on capital gains
  • Zero tax on inheritance
  • Endless tax concessions
  • Affordable contributions for social welfare
  • Sound economy and political climate
  • Mature and well reputed legal system
  • Robust regulatory framework
  • Skilled professional workforce

Jersey Offshore Services

Tax haven jersey has established itself as a premier jurisdiction for offshore companies and services for over 40 years. Supported by a wealth of stockbrokers, financial and legal advisors, fund managers and custodians as well as over 100 investment administrators, about 50 offshore banks, 200 regulated trust and company management business, tax haven Jersey is an international financial center or world repute and class. Other offshore services in tax haven Jersey are:

  • Offshore banking
  • Company formation
  • Offshore trust business
  • Offshore insurance business
  • Asset management
  • Funds
  • Investment business services
  • Money service businesses

Jersey Offshore Legislation

As a sophisticated tax haven Jersey has a robust legislative framework which is widely respected. In ensuring a thoroughly regulated business environment for offshore and international financial services, the following laws were enacted:

  • Criminal Justice (International Co-operation) Jersey Law 2001
  • Terrorism (Amendment No.3) (Jersey) Law 2009
  • Non-Profit Organizations (Jersey) Law 2009
  • The Al-Qa’ida and Taliban (United Nations Measures) Channel Islands) Order 2002

Jersey Financial Services Commission (JFSC)

The Financial Services Commission is mandated to regulate, supervise and develop Jersey as a tax haven and international financial services centre. The duties of the Commission encompass various areas within the financial sector, including banking, money service business, fund services business, trust and company service providers, collective investment funds and insurance companies.

The Commission’s responsibilities are however not limited to only these areas, and includes the enforcement and overseeing of the conduct of financial activities within tax haven Jersey in order to minimize and eliminate the incidence of fraud, financial terrorism and money laundering. In doing this, the Commission ensures that service providers, accountant, high value goods dealers, non-profit organisations, lawyers and estate agents. The General Director of the Commission also assumes the duty of Registrar of Companies.

In continuing to develop tax haven Jersey as a premier international financial centre, the Commission seeks to all authorized entities satisfy the standards, criterions and regulations established both locally and internationally by the respective governing agencies, identify and prevent cases of violation against regulations and standards and collaborates effectively with the Minister.

New Developments

Tax haven Jersey is pulling up its sleeves as it prepares to assess its financial services sector as the global economic downturn intensifies. Jersey prides itself as a regulated offshore jurisdiction and often rejects the ‘Jersey tax haven’ that the country has acquired as a result of its developed financial services sector and business friendly tax structure.

Among several other plans, tax haven Jersey’s Financial Services Commission (JFSC) intends to up the frequency of visits paid to the various financial services firms operating within the island. In 2008, the JFSC recorded a total of about 127 on-site examinations and intends to augment this figure to at least anywhere between 227 and 250 visits in 2009, which will involve examinations tallies with the objective of protecting and enhancing the island’s reputation and integrity in commercial and financial matters’.

On March 9 2009, tax haven Jersey revealed its commitment to the upholding and meeting the tax information exchange standards set by the Organisation for Economic Cooperation and Development by signing a Tax Information Exchange Agreement (TIEA), which took place in London between Terry Le Sueur (Jersey’s Chief Minister) and Stephen Timms. This move was interpreted by many commentators as the jurisdiction’s kneeling to political pressure from the British government, which stated an annual loss of at least 4 billion pounds in revenue to tax evasion.

In addition to this TIEA, tax haven Jersey entered its very first tax agreement in 2002 with the United States and has begun negations to secure other treaties with France, Australia, Ireland and New Zealand, according to statements made by Le Sueur.

However, tax haven Jersey economic development business plan for 2009 expresses the proper positioning that the jurisdiction has achieved in confronting challenges as a result of the wide range of financial services that it offers, and which are built on a secure annuity model with solid streams of recurring revenue.

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