A document designed to provide companies with guidance on how the States’ draft Taxation Companies Economic Substance Law will operate has been published today.
Minister for External Relations, Senator Ian Gorst, last month lodged the proposed Law for debate by the States Assembly at its sitting on 4 December 2018. The Law has been designed to address concerns of the EU Code of Conduct Group on Business Taxation about the need for relevant businesses to demonstrate adequate economic substance in the Island.
The ‘Key aspects in relation to proposed economic substance requirements, as issued by Guernsey, Isle of Man and Jersey’ will give practical help on how the proposed law will be implemented.
This Key Aspects document represents the first level of guidance issued by the States. It is envisaged that this guidance will evolve into a more comprehensive document at a later stage.
The government remains open to discussion on the impact of the proposed legislation and the Key Aspects document on business. Comments are welcome, and should be sent to Tax.Policy@gov.je.
States of Jersey Press Release.