Offshore ten percent is for specified financial services

Offshore Financial center : Jersey Jersey is one of the offshore finance centers (OFCs) in the world. Its robust regulatory framework and political and economic stability have kept the jurisdiction at the forefront of global finance more than 50 years. The main reason that Jersey had been chosen by international investors because of its low taxation. Jersey also ranked the highest for the government responsiveness, the island’s corporate tax regime, operational costs, access to suppliers of professional services and quality of life. Jersey which is the largest of British Channel Islands, lies 135 kilometers south of the English coast. The closeness to the UK means the island’s financial centre is linked to the London City. The majority of financial structures which connected in Jersey are linked to the City. As British Crown dependency, United Kingdom is responsible for defense and external relations, but for established constitutional convention Jersey is self-governing in matters of domestic policy.Jersey island has its own legislative assembly, comprehensive independent legal and administration system. Apart from the few senior offices in the gift of the Crown, most of the executive powers are administered by States Committees. This provides the direct, effective administration, but will short on the checks and balances. The States has aimed for creating a well-regulated, efficient financial center with up-to-date legal,and regulatory frameworks. Besides that, Jersey is not member of European Union, and Protocol No 3 of the UK’s Treaty of Accession to the UK. The island does though apply the external common customs tariff of the EU, but the EU does not apply to Jersey.While, the main reason of the Jersey is low taxes, but high reputation. Under Jersey had zero and ten corporate tax system, most of the corporate income is taxed at zero percent while ten percent is for specified financial services companies. The individuals in Jersey are taxed at the single rate of 20 percent. The social security contributions paid by the employers and employees.There has lack of other taxes on income and assets which are found in other countries, example capital gains tax, capital transfer tax, wealth tax in Jersey. One of the least complex tax regimes in TMF group’s first Financial Complexity Index report is Jersey. According to the report, Hong Kong, United Arab Emirates, and Cayman Islands have more good tax systems. But Jersey not only low taxes, it expertise in specialist wealth management and financing techniques, good international reputation, and high quality financial infrastructure. The evidenced that Jersey has won in the world of the offshore investment and finance. For example, WealthBriefing Europe Awards 2017. This award showcases “best of breed” providers in the global private banking, and trusted advisor communities, by recognizing who have demonstrated the innovation and excellence during 2016. Jersey has been recognized as the best international finance center four times in Award’s five-year history.The second reason for Jersey is regulation. Jersey is one of the best regulated International Financial Centers (IFCs). It is a position that been acknowledged by independent assessments from other world’s leading bodies. For example, OECD, World Bank. Besides that, Jersey scored a high marks from the OECD on tax transparency, which receiving a “fully compliant” rating in the OECD’s Global Forum assessment. This may further reflecting the Island’s commitment to the highest standards of tax transparency. Jersey have signed 52 international tax agreements which 39 tax information exchange agreement (TIEAs) and 13 Double Taxation Agreements (DTAs) to date, which help in building good quality business with those countries and are reflection of Jersey’s commitment to comply with international standards.