The agreements were signed today by Jersey’s assistant chief minister with responsibility for external relations, Philip Bailhache, Guernsey deputy chief minister Jonathan Le Tocq, and Isle of Man treasury minister Eddie Teare.
Jersey already had a DTA with Guernsey dating from 1956 but this was not in line with the latest international standards, said Colin Powell, Jersey’s adviser – international affairs, chief minister’s office. In upgrading the agreement with Guernsey the logic was there to also set up its first ever DTA with the Isle of Man, and also for the Isle of Man similarly to agree to one with Guernsey.
Jersey has signed five other DTAs, with the countries of Estonia, Hong Kong China, Malta, Qatar and Singapore. The Isle of Man already has seven DTAs and Guernsey has comprehensive DTAs with Malta and the UK, alongside more limited DTAs signed with: Australia, Denmark, the Faroes, Finland, Greenland, Iceland, Ireland, Japan, New Zealand, Norway and Sweden.
The new agreements between the crown dependencies, which are in accordance with the OECD Model Double Taxation Convention, provide for the avoidance of double taxation in respect of both corporate and personal incomes including business profits, dividends, interest, royalties, income from employment and pensions.
The agreements also provide for the exchange of information on request equivalent to that provided for in the tax information exchange agreements that Jersey has signed.
