Country code – JE
Legal Basis – Mixed (Customary, French civil and Common)
Legal framework – Foundations (Jersey) Law 2009
Regulatory board - Jersey Financial Services Commission
Entity – Foundation
Liability - A foundation has its own separate legal personality, the properties and resources of it constitute an independent patrimony from that of the Founders, the Foundation Council members, Protector, and Beneficiaries.
Dedication of assets – A Jersey Foundation does not require an initial dedication of assets.
Founder – The founder is who establish the Foundation, it may be a legal or a natural person.
The founder may reserve rights within the regulations of the foundation. Details may not be publicly disclosed.
Foundation Council – The Foundation Council’s role is to administer the foundation’s property and to ensure that its objects are met. The council must consist of at least one member, which may be a corporate entity. It is required that the council must include at all times a Qualified Member. A qualified member is a person licensed under the Financial Services (Jersey) Law 1998 to conduct trust company business and regulated by the Jersey Financial Services Commission. Details may not be available to the public.
Guardian – A Guardian is required for all Foundations. The Guardian has a monitoring role to ensure the foundation's council carries out its functions. The qualified member (but no other council member) or the Founder may act as the Guardian of the foundation. A protector is optional.
The Guardian can sanction any action of the council which would not otherwise be permitted by the charter or regulations
Guardian’s name and address may not be available to the public.
Beneficiaries – A foundation has beneficiaries to the extent that the foundation’s objects provide a benefit to a person and/or class of persons
The beneficiaries of the Foundation have the right to confidentiality.
Beneficiaries' Right to Information - Beneficiaries have no interest in the assets of the foundation, nor are they owed any fiduciary or similar duty by the foundation or by the members of the council, the Guardian or anyone else appointed under the Regulations. However, if a beneficiary becomes entitled to a benefit under the Charter or Regulations and does not receive it, he may apply to the Royal Court of Jersey for an order for the foundation to provide the benefit.
Regulated Person – Jersey Law requires that there is a qualified member on the foundation's council. A qualified member is a person licensed under the Financial Services (Jersey) Law 1998 to conduct trust company business and regulated by the Jersey Financial Services Commission
Foundation Charter - A foundation must have a valid charter at all times, which will be publicly available at the JFSC.
The charter must state the name of the foundation, its lawful objects, information regarding winding up, dissolution and its term, detail of the initial endowment (if any) and if proceeds, a statement that it may be endowed further.
Optionally, the charter may state the names of the first council members, any provisions regarding its amendment and any statement that must or may appear in the regulations.
Foundation Regulations – Optionally, the foundation may establish regulations, a private document regarding the foundation’s administration and how its objects are to be carried out.
The regulations may establish a council, provide for the retirement, appointment, removal, and remuneration of council members, how the council may make decisions, what decisions need approval from a third party and provisions regarding the guardian.
Re-domiciliation – Bahamas Foundations, Liechtenstein Anstalts & Stiftungs, Panama Private Interest Foundations, St Kitts Foundations, Nevis Multiform Foundations, Maltese Private Foundations and Jersey companies may continue as Jersey foundations (and vice versa).
Mergers - Two or more Jersey foundations to merge and continue as one of the merging foundations or as a new Jersey foundation;
one or more Jersey foundations to merge with one or more Recognised Entities to continue as one of the merging Jersey foundations or a new Jersey foundation; and
One or more Jersey foundations to merge with one or more Recognised Entitles to continue as one of the Recognised Entities or a new Recognised Entity. Again there is an administrative charge of £500.
Charitable/Philanthropic Purposes - Permitted.
Compliance – The foundation must retain the following documents and records in its Business address: A copy of the current charter and regulations; A register of the names and addresses of the members of its Council; Records sufficient to show and explain its transactions Records to disclose, with reasonable accuracy, its financial position; A record of the appointment of the Guardian, showing his name, address and the effective date of his appointment; and A register of the names and addresses of all the persons who have endowed the foundation.
Foundations are not required to prepare accounts at any given interval, but the qualified member may arrange for the Foundation to prepare annual accounts.
- Corporate founder permitted * *
- Corporate council members permitted * *
- Protector/Guardian required * *
- Local regulated person required * *
- Founder not disclosed in a public registry * *
- Council members not disclosed in a public registry * *
- Protector/Guardian not disclosed in a public registry * *
- Beneficiaries not disclosed in a public registry * *
- Beneficiaries have right to information * *
- Merge permitted * *
- Redomiciliation permitted * *
- Charitable purposes permitted * *
- Registered agent required * *
- Mixed (Customary, French civil and Common) Base legal
- - Initial endowment of assets *
- 1 Minimum council members *
- £200 Registration fee *
- £150 Annual government fee *
- 2018 AEOI *
In Jersey, a foundation is treated as a corporate taxpayer for income tax purposes.
Corporate tax standard rate is 0%.
Income from real property, such as rental income, property development profits or income from exploiting land is subject to a 20% tax.
Capital Gains are exempt from taxation.
Dividends - Dividends received from resident entities are generally subject to tax at applicable rates. Dividends received from foreign entities are usually tax-exempt.
Interests and royalties are taxed at standard rates.
- Offshore Income Tax Exemption * *
- Offshore capital gains tax exemption * *
- Offshore dividends tax exemption * *
- CFC Rules * *
- Thin Capitalisation Rules * *
- Patent Box * *
- Tax Incentives & Credits * *
- Property Tax * *
- Wealth tax * *
- Estate inheritance tax * *
- Transfer tax * *
- Capital duties * *
- 0% Offshore Income Tax Rate *
- 0% Corporate Tax Rate *
- 0% Capital Gains Tax Rate *
- 0% Dividends Received *
- 0% Dividends Withholding Tax Rate *
- 0% Interests Withholding Tax Rate *
- 0% Royalties Withholding Tax Rate *
- 0 Losses carryback (years) *
- Indefinitely Losses carryforward (years) *
- 6.00% Social Security Employee *
- 6.50% Social Security Employer *
- 20% Personal Income Tax Rate *
- 5% VAT Rate *
- 0 Tax Treaties *
Country details *
The Bailiwick of Jersey is a British Crown Dependency located in the English Channel, to the west of the coasts of Normandy, France. The territory comprises the island of Jersey (which constitutes the greater part) and a series of uninhabited archipelagos such as Les Minquiers, Les Écréhous, and Les Pierres de Lecq among others. Jersey is part of the archipelago of the Channel Islands, which also includes the Bailiwick of Guernsey.
Although the island is not part of the United Kingdom, neither the European Union nor the European Economic Area, its international representation, defense, and good governance is the responsibility of the Government of the United Kingdom.
It has a population of approximately 100,000 people and the capital is Saint Helier.
The native population has as its mother tongue a Norman subdialect of French. But today English is the most widely spoken language.
The head of government is an elected administrator called Bailiff, and the head of state is the lieutenant governor, who is appointed by the king or the queen of England.
In accordance with Protocol 3 of the UK's Accession Act (1972), it belongs to the European Union Customs Union, thereby benefiting from the free movement of industrial and agricultural goods.
As a member of the Common Travel Area (CTA), the free movement of citizens of the European Economic Area is also permitted.
Jersey issues its own notes and coins, the Jersey Pound (JEP), which circulate along the pound sterling and have the same value.
Jersey has one of the highest GDP per capita in the world.
Like Guernsey, the island of Jersey is based on financial services, tourism & hospitality, retail and wholesale, construction and agriculture. Financial services contribute about sixty percent of the island's economy, and the island is recognized as one of the main offshore financial centers.
The main agricultural products are potatoes and dairy products. Jersey's milk source is a small breed of cow that has also been recognized (though not generically) for the quality of its meat. On a small scale, the production of organic meat has been reintroduced in an effort to diversify the industry.