Jersey has a unique constitutional position. Although its allegiance is to the British Crown, it is not a part of the UK and is not represented in the British Houses of Parliament. The island’s domestic autonomy has been preserved via charter and convention through 800 years of English history.
Jersey has its own democratically elected Parliament, which has consistently maintained responsibility for domestic affairs including fiscal matters. Jersey also operates its own judicial system, which is based on common law principles. Furthermore, Jersey is debt-free, with stable reserves and a policy of balanced budgets.
Jersey offers a tax-neutral environment, with no Capital Transfer Tax, Capital Gains Tax, Value Added Tax, Withholding Taxes or Wealth Taxes. This provides tax certainty and allows for fiscally efficient cross-border investment.
Without places like Jersey, bringing many different investors together would be very difficult. And a lot of this investment, and all the benefits it can bring, would be lost. Jersey’s tax model simply allows investors to work together more efficiently. They pay tax in their own countries, and in the country they invest in, without complex cross-border taxation issues and red tape. To ensure that the right tax is being paid, strong regulation is needed. So, we make certain that we know exactly where all money in Jersey has come from, and exactly where it is going. We then share that information with the relevant authorities and governments, working with them to ensure the tax due is being paid. This constant communication is vital to fighting financial crime and corruption.
The thing that sets Jersey apart from other IFCs is our strong regulatory framework – one of the strongest in the world – designed to bring clarity and transparency to the world of finance.
Jersey remains one of the best regulated IFCs, a position that has been acknowledged by independent assessments from some of the world’s leading bodies including the OECD, World Bank and IMF.
Jersey scored top marks from the OECD on tax transparency, receiving a “fully compliant” rating in the OECD’s Global Forum assessment, further reflecting the Island’s commitment to the highest standards of tax transparency and information exchange.
In 2016, Jersey was subject to a Mutual Evaluation by MONEYVAL and was found to be “Compliant” or “Largely Compliant” with 48 out of 49 of the FATF Recommendations, the highest score amongst all states assessed.
The Island has signed up to numerous cooperation and information sharing mechanisms, including Base Erosion Profit Shifting (BEPS) project and the Common Reporting Standards (CRS), and we have a central register of beneficial ownership that meets international standards, to help share information with tax authorities around the world.
The Jersey authorities have also signed 52 international tax agreements (39 TIEAs and 13 DTAs) to date, which assist in building good quality business with those countries and are also a reflection of Jersey’s commitment to comply with international standards.
Jersey has a visible financial industry in its capital, St. Helier, and employs a quarter of the local workforce. In over five decades, Jersey has developed a breadth and depth to its range of products and services that competing jurisdictions find difficult to match.
Jersey’s robust, modern and sophisticated legal framework is the source and foundation of Jersey’s finance industry. Developments and enhancements are continually being made to ensure flexibility and attractiveness to domestic and international markets.
Jersey has an award-winning finance industry, which employs a quarter of the local population. It’s expert and highly-skilled workforce works with key stakeholders to develop products and services that add value to local and global economies, as well as the futures of individual investors.