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Government of

Information and public services for the Island of Jersey

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

Allocation of company drawings statement of practice

​This statement of practice only applies to transactions where the legal analysis is unclear at the date the transaction takes place. 

It will not be applicable where it is clear that a payment is a distribution or remuneration at the time it is made.

Allocation of drawings made

Company secretaries and agents will have until the 31 December in the year following the year of assessment in which the financial period ends to allocate drawings made between:

  • director’s remuneration and fees
  • or other payments that fall under the distributions rules

Taxation of company distributions: draft guidance

Director's remuneration

The company secretary or agent must file a supplementary ITIS return for the additional remuneration by submitting a return for the final month of the relevant financial period. For example December for an accounting period based on a calendar year. 

The ITIS effective rate to apply will be the rate applicable to the final month of the financial statements.

Director's fees

The company secretary or agent must file an ITIS return showing the gross income and tax due in accordance with Articles 65A and 41B.

Income Tax (Jersey) Law 1961 and amendments


The company secretary or agent must supply a certificate in support of each distribution made to a Jersey resident shareholder. 

The certificate should clearly show, whether the amount is taxable under Case IX or Case III, or whether it is considered exempt under Article 78(1A) of the Income Tax (Jersey) Law 1961.

Misuse of the statement of practice

If the Comptroller of Revenue is of the opinion that this statement of practice is being misused, then the practice will not be allowed and all payments will be treated as taxable distributions.

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