JERSEY is pursuing agreements with various countries to prevent Islanders being taxed twice on their income, the External Relations Minister has confirmed.
Deputy Ian Gorst said these double-taxation agreements would also help to boost business opportunities.
He added that proposals regarding Mauritius and Ireland could soon brought before the States Assembly.
During an Economic and International Affairs Scrutiny Panel hearing, Deputy Gorst said: “We’ve had some really positive negotiations where we’ve achieved good outcomes, and we’re getting towards that final stage of doing the legal review and being able to present them.”
Jersey faced challenges as a smaller jurisdiction, the minister explained, especially as large countries often prioritised agreements with other large nations.
He added that while some agreements could be reached quickly, others might take years.
External Relations director Tom Le Feuvre explained that Jersey typically followed the OECD model for negotiations – which can expedite the process when dealing with countries that use a similar framework. However, he added that developing countries often preferred the UN model, which could lead to longer negotiations.
Deputy Gorst also highlighted ongoing efforts to establish an agreement with Portugal, which he said would benefit the Portuguese community in Jersey and Islanders living
in Portugal – but that Lisbon had not yet reciprocated.
This topic was raised in the States Assembly last month by Deputy Montfort Tadier, who expressed concerns about Islanders living in Portugal being taxed twice.
Responding, Deputy Gorst said that his team was in “regular discussions” with Portuguese counterparts.
While Jersey and Portugal have shared tax information since 2011, the minister said that creating a double-taxation agreement was less “straightforward” and could “take some time”.
He said that Brexit made it harder to create these agreements with EU countries, adding that the process could take between two and four years with a willing partner, but “decades” without one.
He pointed out that Jersey’s tax legislation offered some relief and advised people to contact Revenue Jersey for guidance.
