The Jersey States Assembly has published the Finance (2022 Budget) (Jersey) Law 202-, which was adopted by the States Assembly on 17 December 2021 and is currently pending sanctioning and registration by the Royal Court. Although pending, Jersey has also published the Act declaring that the 2022 Budget Law has immediate effect as if it had been sanctioned and registered. The final articles and measures of the law are generally in line with the draft as previously reported, with a few adjustments. Measures include:

• The standard rate of income tax for 2022 is set at 20%;
• New provisions are introduced to allow Commissioners of Appeal to meet remotely, assuming they decide it is appropriate to do so in the circumstances;
• Amendments are made to provide more accurate Income Tax Instalment System (ITIS) effective rate calculations for employees;
• Amendments are made regarding business interest cost rules, including:
  • amendments to clarify the rule that interest arising on disallowed expenditure – for example, where a loan is used to buy plant and machinery – is not an expense of the trade and therefore should be disallowed for tax purposes;
  • amendments providing tax relief when interest arises on borrowings used to finance the purchase of land and buildings used in a commercial letting business;
  • amendments to clarify that borrowing costs for an assessment year include interest charges and the incidental costs of obtaining borrowings, including fees paid when a loan is obtained, for example, an arrangement fee, or the costs of securing a loan;
  • other related amendments;
• Rules regarding personal income tax residency are amended in relation to the apportionment of an individual's income, the income tax threshold, and any allowances due for the years of arrival and departure, including new rules for apportionment by days of residence rather than complete weeks;
• Personal allowances and reliefs are amended, including:
  • the single persons' threshold increases from JEP 16,000 to JEP 16,550;
  • the threshold for married couples and civil partners increases from JEP 25,700 to JEP 26,550; and
  • the increase to the child day care "qualifying income" threshold is aligned to the second earner's allowance, which is increased from JEP 6,300 to JEP 6,550;
• Excise duties for tobacco, spirits and spirits-based drinks, wines, hydrocarbon oil, and vehicle emissions are increased along with other adjustments regarding customs and excise; and
• New measures are introduced to give effect to Government proposals to require large offshore retailers and online marketplaces to register for GST where the annual aggregated customs value of their supplies to Jersey residents exceeds JEP 300,000, which commence on 1 January 2023 with voluntary registration allowed before that date.

The measures of the Finance (2022 Budget) (Jersey) Law 202- will generally come into force on 1 January 2022. However, Articles 29 and 30 (excise duty: motor vehicles – general and commercial vehicles) will come into force on 1 April 2022, and Articles 32 to 40 and 42 regarding GST for offshore retailers and online marketplaces will come into force on 1 January 2023.