General business taxation

For owner managed businesses moving to Jersey, profits will simply be taxed at the standard rate of 20%. Whilst this rate will reduce to 10% or 0% from 2009 onwards (depending upon whether the company is carrying on a regulated financial services business), a form of imputation system will be introduced for locally owned businesses to ensure that corporate structures are not used by local residents to avoid income tax.

Taxation of funds and fund management businesses

An important feature of most investment funds is their tax neutrality, and Jersey offers a range of vehicles specifically designed to meet this objective. Accordingly, it is most common for the fund vehicle itself to be outside the scope of Jersey taxation (with any tax liability instead falling upon the individual fund investors).

Clearly, a Jersey resident fund promoter/manager will be subject to Jersey taxation on taxable profits arising from its business in the normal way. A key criterion for any new business seeking to establish a presence in Jersey is the expected level of tax contribution.