Jersey has published the Taxation (Companies - Economic Substance) (Amendment No. 2) (Jersey) Law 202-, which was adopted by the States Assembly on 10 February 2021 and is currently pending sanctioning and registration by the Royal Court. The Law amends the Taxation (Companies – Economic Substance) (Jersey) Law 2019 to extend Jersey's economic substance regime to self-managed funds, including that such funds must satisfy the economic substance test. A self-managed fund meets the economic substance test if:
The requirements apply to self-managed funds that are a resident company for financial periods commencing on or after 1 January 2021. Certain relevant activities are excluded, however, including business conducted by a collective investment fund as defined in the Collective Investment Funds (Jersey) Law 1988 and business conducted by a fund that would be a collective investment fund if units in the fund were offered to the public.
The law will enter into force 7 days after it is registered.
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