In Budget 2018 the States Assembly agreed to apply a higher rate of tax to the profits of large corporate retailers with effect from the year of assessment 2018.
Article 7 of the Finance (2018 Budget) (Jersey) Law 2018
To be a large corporate retailer a company will have met certain tests. The tests are applied to the financial period(s) which end in the year of assessment. These tests are considered for each year of assessment. Accordingly a company may be a large corporate retailer in one year whilst not a large corporate retailer in another year.
Year of assessment 2018
Companies which are within the scope of the tax on large corporate retailers will first become chargeable to tax on their profits for the financial period(s) ending in 2018. A company which has a financial period ending on (for example) 30 June 2018 will be chargeable to tax on the profits for the whole of that financial period for the year of assessment 2018.
However the amount of tax a large corporate retailer will ultimately pay will depend on the level of the company’s taxable profits. This is because the rate of tax applied to a large corporate retailer varies as the company’s taxable profits exceeds certain thresholds. The maximum rate of tax applied to the taxable profits of a large corporate retailer is 20%.
For further information, please see the guidance notes below.
Large corporate retailers guidance notes