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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

2009 retention tax payments made to the EU Member States

Jersey paying agents retained and passed to the Comptroller of Taxes a total of £11.8 million of retention tax for the year 2009. This is in accordance with agreements entered into with each of the 27 EU member states on the taxation of savings income that individuals resident in the member states are receiving on deposits in the Island.

Under the terms of the agreements, 75% of the tax retained (£8.85 million) is sent to the individual member states and the remaining 25% (£2.95 million) is retained by the Treasury.

The tax sent to the member states and that retained by the Treasury is substantially less than for 2008, when the figures were £26.72 million and £8.91 million respectively. This is due to the very substantial reduction in interest rates following the global financial crisis.

EU Savings Directive retention tax distribution list

Year 2009 (distributed 30 June 2010) 
    GBP  EUR  USD  CHF  Sterling total 
Austria  2009  52,773  3,337  1,416  56,647 
Belgium  2009  117,362  21,400  2,467  331  138,186 
Bulgaria  2009  4,252  502  4,702 
Cyprus  2009  164,178  5,531  30,053  188,287 
Czech Republic  2009  22,105  3,961  422  25,900 
Germany  2009  291,228  32,888  10,311  327,093 
Denmark  2009  31,023  1,461  1,124  33,002 
Estonia  2009  240  240 
Spain  2009  769,103  48,223  16,983  822,884 
Finland  2009  12,724  114  228  12,971 
France  2009  655,705  52,289  89,150  759,169 
Great Britain  2009  4,524,845  289,887  280,302  4,566  4,964,539 
Greece  2009  128,950  76,447  63,890  69  237,832 
Hungary  2009  33,213  1,304  218  34,512 
Ireland  2009  218,668  13,111  10,396  236,977 
Italy  2009  283,745  21,791  6,980  307,541 
Lithuania  2009  829  14  844 
Luxembourg  2009  13,690  934  14  14,529 
Latvia  2009  2,075  44  41  2,140 
Malta  2009  178,958  2,790  12,031  189,122 
Netherlands  2009  140,782  28,722  4,186  169,023 
Poland  2009  31,322  3,326  540  34,628 
Portugal  2009  157,081  19,077  14,277  557  183,179 
Romania  2009  4,888  1,706  1,534  7,714 
Sweden  2009  88,553  6,165  3,522  2 96,290 
Slovenia  2009  2,091  2,097 
Slovak Republic  2009  2,001  190  348  2,397 
    7,932,384  635,221  550,443  5,547  8,852,445 

Supplementary information

  1. When the EU member states implemented, with effect from 1 July 2005, a directive on the taxation of savings income, Jersey, in common with a number of other dependent or associated territories of the member states and 5 European third countries (Andorra, Liechtenstein, Monaco, San Marino and Switzerland), agreed to support the European Union by applying a withholding / retention tax to savings income arising in the Island, the beneficial owner of which is an individual who resides in a member state. Within the European Union, Austria, Belgium and Luxembourg are also applying a withholding tax. The remaining 24 member states of the European Union are exchanging information on savings income.
  2. To give effect to their support for the EU initiative, the States of Jersey enacted the Taxation (Agreements with European Union Member States) (Jersey) Regulations 2005.
  3. Under these regulations, the Comptroller of Taxes is appointed as the competent authority for the collection of the tax and its remittance to the relevant member states. 
  4. The regulations provide that tax retained in respect of each year be transferred to the relevant member state within 6 months of the end of the tax year. For the first 3 years (July 2005 – July 2008) retention tax was at the rate of 15%; for the following 3 years (July 2008 – July 2011) the rate is 20%; and thereafter the rate will be 35%.
  5. The agreements with the 27 EU member states provides for the individuals subject to the retention tax to choose to opt for voluntary disclosure of information to the tax authorities of their member state of residence as an alternative to paying the tax. For the year 2009 those disclosing accounted for some 65% of the interest payments covered by the agreements with the member states (for 2008 the proportion was 57%). 
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