Only the British Virgin Islands and Cayman Islands are less complex than Jersey when it comes to accounting and tax compliance, according to TMF Group’s Financial Complexity Index (FCI) for 2018.
The index ranked Jersey 92nd out of 94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific and the Americas, with 1 being most complex through to 94 the least complex. TMF did not include Guernsey in the survey.
Jersey’s ranking puts it in front of Hong Kong, and two places better than its inaugural FCI ranking of 90th last year.
At the other end of the financial complexity scale, China is the most complex jurisdiction in the world, followed by Brazil, Turkey, Italy and Argentina.
10 least complex jurisdictions for financial compliance
94 Cayman Islands
93 BVI
92 Jersey
91 Hong Kong
90 Curacao
89 Afghanistan
88 Guyana
87 Norway
86 Bangladesh
85 Singapore
To determine the rankings, TMF circulated a 74-question survey to specialists in each country, with weighted complexity parameters for regulatory compliance, tax, statutory reporting and bookkeeping.
Managing Director of TMF Jersey Cengiz Somay commented: “Jersey has a long-standing reputation as an easy place to do business, and once again this is reflected in its FCI ranking.
“Local laws do require that accounting records are maintained, and annual accounts prepared and approved by the directors/shareholders or trustees. However, the laws are relatively relaxed regarding the format and content of the accounts themselves. Likewise, there is generally no audit requirement under local law for private companies and trusts.”
• To download the full report click here