The government of Jersey is currently reviewing tax arrangements for individuals who live and work across different jurisdictions. This initiative aims to provide greater clarity regarding tax obligations, particularly in light of evolving working patterns. The discussion was prompted during a recent Scrutiny hearing featuring External Relations Minister Ian Gorst and Deputy Comptroller of Revenue Cora O’Brien.
During the hearing, O’Brien highlighted the government’s intention to make Jersey more competitive by examining the taxation of cross-border movements. She stated, “We are looking at the taxation of cross-border movements of people in and out of Jersey, and we are looking at ways in which we can reduce barriers that might exist, or frictions in the system, where people might be working from a home office or a base here, while also being employed by somebody elsewhere.”
The review is particularly focused on the personal income tax residence regime, with plans to implement a clearer framework starting in January 2028. O’Brien emphasized that this new regime would provide more certainty for taxpayers navigating their cross-border employment situations.
Flexibility for Modern Work Arrangements
Panel chair Deputy Montfort Tadier expressed interest in exploring flexible working arrangements that reflect modern employment trends. He noted that individuals may reside in one jurisdiction while working in another, raising questions about taxation based on dual-taxation agreements.
O’Brien acknowledged that Jersey’s focus aligns with global trends, particularly as the Organisation for Economic Co-operation and Development (OECD) is anticipated to release guidance on cross-border working and remote employment. The government intends to review residency rules as well, which could facilitate the attraction of skilled professionals to Jersey. Additionally, the aim is to enable local businesses to allow employees to gain international experience.
A consultation is scheduled to take place later this year, with O’Brien indicating, “We have some concrete ideas about how we should change it, and we will be putting that out for wider discussion.” This process is expected to engage various stakeholders, given the diverse priorities of different groups across the island.
The dialogue regarding tax changes was initiated by Deputy Beatriz Porée, who raised questions about double-taxation agreements following the recent treaty signed between Jersey and Bahrain. When asked about the potential for additional treaties, Gorst mentioned ongoing discussions with Romania regarding a possible double-taxation agreement and preliminary talks with Portugal to enhance cooperation on taxation matters.
As the government of Jersey moves forward with these reviews, the objective remains clear: to adapt tax policies that reflect the changing nature of work while ensuring a competitive and appealing environment for both residents and businesses. The outcomes of the forthcoming consultations will likely shape the future of cross-border taxation in Jersey, addressing the needs of a dynamic workforce.
