The Taxation (Partnerships - Economic Substance) (Jersey) Law 2021 brings certain partnerships within the scope of Jersey’s economic substance regime. Under these rules, ‘resident partnerships’ must satisfy an economic substance test in relation to any ‘relevant activity’ it carries on for which it has gross income. ‘Relevant activity’ definitions largely follow those in the existing company economic substance rules. Penalties and possible exchange of information apply where the substance test has not been met. There are exceptions to the rules where: all of the partners are individuals who are subject to Jersey income tax; for that financial period; the partnership was not part of a multinational group and did not undertake business activities outside Jersey; or the partnership is a regulated collective investment scheme.
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The Taxation (Partnerships - Economic Substance) (Jersey) Law 2021 brings certain partnerships within the scope of Jersey’s economic substance regime. Under these rules, ‘resident partnerships’ must satisfy an economic substance test in relation to any ‘relevant activity’ it carries on for which it has gross income. ‘Relevant activity’ definitions largely follow those in the existing company economic substance rules. Penalties and possible exchange of information apply where the substance test has not been met. There are exceptions to the rules where: all of the partners are individuals who are subject to Jersey income tax; for that financial period; the partnership was not part of a multinational group and did not undertake business activities outside Jersey; or the partnership is a regulated collective investment scheme.
If you are not a subscriber, subscribe now to read this content.
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