The Minister for External Relations, Senator Ian Gorst (pictured), has finalised a new double taxation agreement (DTA) with the UK government
The formal process, known as an exchange of letters, took place in London in a meeting with the Financial Secretary to HM Treasury.
The new DTA replaces an existing agreement from 1952. While the old agreement worked satisfactorily for both parties, it is not aligned with the current OECD Model DTA Convention standard. Jersey is committed to adopting and complying with the leading OECD standards.
Senator Gorst commented: “There are two important reasons why a new DTA is required. First, the avoidance of double taxation is of great importance given the close corporate and individual relationships that exists between Jersey and the UK. I expect this relationship will be further enhanced when the UK withdraws from the EU.
“Second, by entering this agreement, we emphasise that we are fully committed to compliance with the international tax standards set by the OECD.
“On both counts the government of Jersey are pleased with the outcome of the negotiation of the new DTA, and I would like to express our appreciation to UK tax officials for the constructive, positive and helpful working relationship we have enjoyed.”
The exchange of letters, the DTA and an accompanying Protocol will be presented to the States Assembly for ratification. It is expected that the new DTA will come into force at the beginning of 2019.