Tax information: Leaving Jersey
Welcome to the tax guide on going to Jersey, produced by Deloitte. Looking for tax information about leaving Jersey, Click here
This document has been prepared based on the legislation and practices of the country concerned as at 01 April 2009. Tax legislation and administrative practices may change, and this document is a summary of potential issues to consider. This document should not be used as a substitute for professional tax and immigration advice which should be sought for the country of arrival and departure in advance of moving in order to discuss your specific circumstances.
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Before/once you departQ. Should I complete any documentation prior to leaving Jersey?
A. No, however you should inform the Jersey tax authorities of your departure.
Q. Will I be regarded as not resident in Jersey during my period overseas?
A. You will be Not Resident unless you are:
(1) Physically present in Jersey for more than 183 days in the tax year;
(2) Present, on average, for at least 3 months per year over a 4-year period; or
(3) You maintain a place of abode in Jersey and visit Jersey for any length of time, however short such a visit may be..
Q. Will I still need to complete a Jersey tax return after my departure?
A. If you are regarded as Non Resident you will be required to file a tax return to report any continuing source of Jersey income. If you remain resident you will need to continue to file tax returns.
In 2006, Jersey introduced ITIS (Income Tax Instalment System) which means that income tax is now withheld from an individual's salary at a rate determined by the Jersey tax office depending on that individual's personal circumstances. This system is quite crude and does mean that there may be under/overpayments towards their liabilities.
Individuals that moved to Jersey after 1 January 2006 pay their Jersey tax on a current year basis therefore (provided they are in employment) the ITIS they pay during 2009 will be set against their 2009 tax liability. This therefore means that the majority (if not all) of their liability should have been covered by ITIS payments. They would therefore not necessarily have a tax payment to make after their departure.
However, individuals who moved to Jersey prior to 2006 pay tax on a prior year basis i.e. the tax that they pay during 2009 is offset against their 2008 Jersey tax liability. Therefore their tax liability for the last year of residence in Jersey will remain outstanding when they leave. This will become due and payable once the tax office issue an assessment following the submission of their last tax return however, the payment deadline for this liability will not be until the Friday following the first Monday in December in the year after their departure.
Q. Will I have to pay Jersey tax in respect of the employment income I will earn overseas?
A. This will depend upon your residence status. Resident individuals are subject to tax on their Jersey-source income and on remittances of income to Jersey. Ordinarily Resident individuals are subject to Jersey income tax on their worldwide income. Non-resident individuals are subject to Jersey tax on local-source income only (except, by concession, local bank interest).
Q. Will I have to pay tax in respect of Jersey investment income earned while overeas?
A. Income from real estate is taxed at the rate of 20 per cent. Real estate rental expenses are fully deductible. By concession, Non Resident individuals are not subject to tax on interest from bank deposits. Non-residents in receipt of other forms of investment income should seek tax advice.
Q. I plan to sell my Jersey property while overseas. Are there any capital gains tax implications?
A. No, Jersey does not have a Capital Gains Tax regime.
Q. Will I remain liable to Jersey capital gains tax if I sell any shares while outside Jersey?
A. Jersey does not have a Capital Gains Tax regime.
Q. What Social Security contributions will I pay when abroad?
If you leave the island permanently and are not in Jersey employment, your liability for contributions stops.
A. A Jersey resident going on secondment to a country with which Jersey does not have a reciprocal agreement may be liable to continue paying Jersey social security contributions. However this is determined on a case by case basis by the social security department and therefore you should write to the department to provide them with the details of your secondment so they can assess whether you continue to have an obligation to pay social security contributions.
Where in place, reciprocal agreements override domestic legislation. Generally, if you are working for an employer from a country with which Jersey has a reciprocal agreement you should be able to remain in Jersey’s social security system for a specified period.
