Tax – Bean counting time!
Following the introduction of the Economic Substance legislation in 2019, Jersey tax resident companies are now required to submit financial statements along with their Jersey tax return to the Jersey Income Tax office. This applies for the tax year 2019 and subsequently.
A Jersey company tax return must be completed in all years for which the Company is in existence, however, accounts must also be filed along with the tax return in any years in which there is a financial period ending. This represents a change from previous years where companies only required to file a tax return containing a summary of financial information.
The Jersey tax filing requirements exist in addition to the ongoing statutory requirement for all Jersey Companies to prepare annual accounts. The first period of account can be any day, however, that day must be within 18 months of the date of incorporation and then annually thereafter. Accounts must then be prepared and approved by the directors within 10 months of the chosen financial year-end. A copy of the signed accounts, together with the minute of the directors approving them, must be kept in the Company statutory records.
If you would like GS Accountants to assist with the bookkeeping for your company and the preparation of your annual accounts and the filing of your Company tax return, please contact us as soon as possible. Please note that it remains a statutory requirement to have these held in the minute book at the Registered Office.
All tax returns and accounts must be submitted to the authorities by 31 December to avoid any penalties.
A company which fails to deliver the return by this deadline will be liable to a penalty of £300. Furthermore, if the return is not delivered within 3 months after the deadline will also be liable to an additional penalty of £100 for each month that the return remains undelivered up to a maximum of 9 months. Fines in respect of the Economic Substance legislation can reach £10,000 in the first year rising to £100,000 in later years so it is important not only to deliver the returns in on time but correctly.”
Please contact the GS team in the event of any queries and we will be happy to assist.