EVENT: Using Jersey as an International Financial Centre
Date: 23rd February, 2018 Time: 12:30 pm - 02:30 pm
Our latest Corporate Members lunch was presented by Jersey Finance and PwC and focussed on explaining the legal status of Jersey as a British Crown Dependency, its tax regime, and the insfrastructure that exists on the island to support international financial services.
Senior officials from Jersey Finance explained that Jersey has its own legal and regulatory structure due to its status as a British Crown Dependency. (It is therefore not part of the United Kingdom or the EU.). This has enabled Jersey to built a unique legal structure which will not suffer disruption due to Brexit. Jersey has its own financial regulatory structure which is designed to encourage the participation of financial firms, while adhering to strict international standards on transparency and the fight against financial crime. Jersey's status as a leading international financial centre that is keen to implement best international practices on regulation has been recognised by the IMF, the World Bank and the OECD. Twenty one banking groups operate in Jersey, including some of the biggest in the world.
The presentation from Jersey Finance was followed by a presentation from PwC, explaining the low tax environment in Jersey. 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.
The standard rate of corporate tax in Jersey is 0%, with higher rates for regulated financial service companies (taxed at 10%), utility companies and income specifically derived from Jersey property rentals or Jersey property development (both taxed at 20%). There is no tax levied on non-resident individuals, and personal tax for most residents tapers up to a maximum of 20%. Overseas-born high-value residents are taxed on their worldwide income at a rate of 20% on the first £725,000 of income and 1% on any further income. The PwC presentation also gave examples of how tax would be levied on an Arab bank based in the Middle East, with a subsidiary in London, that has a branch in Jersey.
Both the Jersey Finance presentation and the PwC presentation are attached below. For more information, please contact
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