EUSD questions and answers
What is the European Union Savings Directive and what does it have to do with Jersey ?
Jersey has entered into bilateral agreements with all European Union countries to deduct tax (known as a retention tax) from the interest payments made to people resident in an EU member state.
Alternatively, an individual can provide information about the savings income they receive in Jersey to the relevant authorities in the EU country they officially live in.
When did it come into effect?
1 July 2005.
I am a paying agent and will have responsibility for deducting the retention tax from interest payments, is there information for me?
The crown dependencies working together have agreed guidance notes to accompany their respective insular legislation that is required to bring into effect the agreements with each of the EU member states.
The notes are intended to help the reader answer for themselves questions such as whether they are a paying agent, whether they are a person to whom interest payments are made, and whether the interest payments made or received are subject to the retention tax.
Download full EUSD guidance notes (size 174kb)
Download supplementary EUSD guidance notes (size 49kb)
What is the deadline for paying the withholding / retention tax?
The deadline every year is 31 March, for payments relating to the previous year.
If I opt for exchange of information, what’s the deadline for disclosing this information?
The deadline every year is 31 March, for information relating to the previous year.
What is the rate of retention tax?
The rate of retention tax was 15 per cent from 1 July 2005, 20 per cent from 1 July 2008, and rises to 35 per cent from 1 July 2011.
What does the comptroller of taxes do with the retention tax?
He would keep 25 per cent of the retention tax and send the rest to the relevant authority in the EU member state where the beneficial owner of the interest officially lives.
What does the comptroller do with the information voluntarily disclosed?
He sends returns of information to the relevant authority of the EU member state in which the individual officially lives.
How do I send the information to be voluntarily disclosed to the comptroller of taxes?
The easiest way to send the information is via our 'do it online' site. However, you can also send it via web form, email, floppy, CD, DVD, paper format or letter.
EUSD methods of submission
Who can I contact if I have questions about the way I submit this retention / withholding tax, or any other related query?
In the first instance you should contact the assistant comptroller. However, if it is a technical or practical query concerning the actual transfer you should contact the information services director.
Where do I send the retention tax money?
You can submit a cheque in one of the four designated currencies – Euro, £ sterling, $ USA or Swiss Franc. Alternatively, you can send the sum directly to the relevant retention tax bank account opened by the comptroller of taxes, details as follows:
Retention Tax Control Account – Euro
HSBC
Bank Sort Code : 40-05-15
Account Number : 59776169
IBAN Number : GB52MIDL40051559776169
Retention Tax Control Account - £ sterling
HSBC
Bank Sort Code : 40-25-33
Account Number : 51643207
IBAN Number : GB08MIDL40253351643207
Retention Tax Control Account - $ USA
HSBC
Bank Sort Code : 40-05-15
Account Number : 59775476
IBAN Number : GB42MIDL40051559775476
Retention Tax Control Account – Swiss Franc
HSBC
Bank Sort Code : 40-05-15
Account Number : 59775484
IBAN Number : GB20MIDL40051559775484
If I send the retention tax straight to one of these bank accounts, do I have to do anything else?
Yes. If you do send the retention tax directly to the relevant bank account by electronic means, you must also send the paper or electronic return to the comptroller at the same time so that he can reconcile and account for payments into the bank accounts. Whichever format is used for the return, you must provide the following details as a minimum:
- the total amount of the payment made
- the account it is to be paid into
- written statement that the payment being transferred is the retention tax on savings income
- the EU country in which the beneficial owner is resident
If you send a cheque it must be accompanied by a retention tax return. These are available from the taxes office.
What is the possible impact of changes to the UK non-dom rules?
Paragraph 34 of the guidance notes remains unchanged. If the paying agent acts on information received from the client and considers at the time the information is sufficient to act upon, then if the client subsequently changes their mind the paying agent will not be considered to be at fault.
What happens if a paying agent submits an incorrect return?
If the comptroller discovers that a paying agent has knowingly failed to comply with their obligations and knowingly submitted an incorrect return they would be considered to be guilty of an offence as laid out at paragraph 15 of the Taxation (Implementation No. 1) (Jersey) Regulations 2004.
Download full EUSD guidance notes (size 174kb)