Tax relief rules for charities
From Tuesday 1 January 2019 a charity must be registered with the Charity Commissioner to be able to claim the following charitable tax reliefs:
- income tax exemption
- refunds of GST incurred on goods and services
- repayment of tax deducted by donors under a Deed of Covenant
- repayment of tax deducted by donors under the Lump Sum Donation scheme
- stamp duty exemption
- land transaction tax exemption
Charities that are currently approved by the Taxes Office, have until Monday 31 December 2018 to apply to the Charity Commissioner for approval.
You can apply to register your charity or contact the Charity Commissioner on the Jersey Charity Commissioner website.
Registering a Registered Charity with Revenue Jersey
Once a charity has been Registered by the Jersey Charity Commissioner it should contact Revenue Jersey to obtain a Tax Identification Number (TIN). This will then enable the charity to apply for and obtain GST and income tax refunds from the date it has been Registered by the Commissioner.
The name and address of the charity and its Registered charity number is all that is required. These details can be submitted by email to Revenue Jersey.
Charities that have previously registered with the Revenue Jersey prior to 31 December 2018 ( see Transitional rules section below) do not need to reapply for a TIN upon the Jersey Charity Commissioner giving that charity Registered status.
Some transitional rules apply during 2018, 2019 and 2020. These rules differ depending on whether the body is currently approved by Revenue Jersey.
Rules for bodies that are currently 'Taxes Office approved charities' in 2018
Transitional rules for charities currently approved by the 'Taxes Office':
- charities that have been approved by the Taxes Office will retain access to all the available charitable tax reliefs until 31 December 2018
- such charities will need to make an application to be a registered charity to the Charity Commissioner by 31 December 2018. If no application is received by this date the charity won't be entitled to charitable tax reliefs from 1 January 2019
- if an application to be a registered charity is made to the Charity Commissioner and the Commissioner determines that it is not a charity, on or before 31 December 2018, the body won't be entitled to charitable tax reliefs from 1 January 2019
- if an application to be a registered charity is made to the Charity Commissioner on or before 31 December 2018 and the Charity Commissioner has not made a determination at 1 January 2019, the body will remain entitled to charitable tax reliefs until 31 December 2020
- the entitlement to charitable tax reliefs from 2021 will be determined solely by reference to whether it has been registered by the Charity Commissioner by 1 January 2021
Rules for bodies which are not 'Taxes Office approved charities' in 2018
Transitional rules for bodies that have not been approved by the Taxes Office:
- these bodies are able to approach the Charity Commissioner to obtain registered charity status (from 1 May 2018). These bodies which are registered by the Charity Commissioner during 2018 will only be entitled to charitable tax reliefs from 1 January 2019.
- bodies which are registered by the Charity Commissioner after 1 January 2019 will be entitled to charitable tax reliefs from the date the charity is registered.