Jersey as an Offshore Company Tax Haven

Jersey is another self-governing British Crown dependency and is famous for its tax-haven status and has negotiated a special association with the EEC, which recognises, preserves and guarantees is fiscal autonomy, thereby ensuring the EEC policies on domestic taxation are not payable. Apart from having no capital gains tax, there is also no inheritance tax but 3% Goods & Services Tax (GST) in Jersey. The main tax that residents have to pay is income tax, which is set at a flat rate of 20%. Jersey offers an attractive offshore company regime. The island changed to a 0/10 system, which means that is has a 0% corporation tax rates, except for finance companies which pay 10%.

The island is beneficial as a trust jurisdiction. The main benefit is that when the beneficiaries of a trust are non-resident, there is no local tax charged on foreign income and local bank interest. This makes Jersey trusts popular with UK residents. The lack of double tax treaties reduces the attractiveness of the island as a holding company destination. However, if you’re looking to avoid capital gains tax or just reduce income tax, Jersey would be a good choice.

The Island has agreed to implement the OECD Exchange of Information treaty and has signed an agreement with the UK. This allows HM Revenue & Customs (HMRC) to ask for the bank account details of any company that could be liable for income tax, corporation tax, capital gains tax or VAT in the UK.

Jersey Companies and their Tax Liability

Jersey applies a 0/10 tax system for companies has from 2009. This was achieved by introducing a standard rate of corporate income tax of 0% and a special rate of 10% for specified financial services companies into the Island’s existing schedular tax system. Utility companies, rental income and property development profits continue to be charged at the standard rate of income tax of 20%.

All companies resident for tax purposes in Jersey prior to June 3, 2008, switched to a tax rate of either 0% or 10% for the year of assessment 2009 onwards. However, a company that became resident for tax purposes in the Island on or after June 3, 2008, was taxed at either a 0% or a 10% rate immediately. Companies have been unable to elect for exempt company status from this date.

Jersey Offshore Company Banking

Offshore Trade Services can incorporate Jersey offshore companies with a choice of offshore bank accounts at the time of formation. We work closely with a number of banks, including HSBC, and FBME in Cyprus. Combining the two saves time and couldn’t be simpler.

Jersey Company Formation / Registration

Offshore Trade Services are able to incorporate a Jersey offshore company. Company formation normally takes 1 working day to register.

Jersey Offshore Company Anonymity and Disclosure

The identity of the beneficial owners of a Jersey company may remain confidential if corporate shareholders are engaged to act as the shareholder on behalf of the ultimate beneficial owners. This confidentiality is maintained as long as the company and its ultimate beneficial owners are not involved in any criminal activity. Offshore Trade Services can supply the use of our corporate shareholders for this very purpose. Similarly, the register of Directors within Jersey is also publicly accessible and so if anonymity is required, Offshore Trade Services can supply the use of Nominee Directors.

Jersey companies are required to produce accounts for each financial year although these are not filed with any external bodies. Companies can obtain exemption from the requirement to have their accounts audited providing that they satisfy tests relating to net turnover, net balance sheet and the average number of employees.

Our Services – Offshore Company Formation, Nominee Director, Nominee Shareholder, Mail forwarding and Bank Accounts

Offshore Trade Services specialize in Jersey company formations ranging from simple company registrations to complex structures including offshore Trusts and in providing a very comprehensive assortment of administrative services to Jersey companies, including the provision of Nominee Director, Nominee Shareholder, Mail Forwarding and Bank Account services. We are also able to offer a 'transfer in' service whereby we can take over the management of your existing Jersey Offshore Company, often for no cost at all.

Please read also about our Due Diligence Requirements.