Partnership income and how it's taxed
Year of assessment 2021 and earlier years
Partnership income was previously taxed at the partnership in accordance with the profit-sharing agreement in place between partners.
Partnership guidance 2021 and earlier years
Year of assessment 2022 onwards
From 2023, partnerships are required to file one Combined Partnership Notification.
The following partnerships are treated as transparent for Jersey income
tax purposes, meaning the partnership itself is not assessed to Jersey income
tax. Where applicable, each partner's share of the partnership's profits and gains should be declared on their own Jersey income tax return:
- general partnerships (with a business in Jersey)
- limited partnerships
- Jersey registered incorporated limited partnerships
- Jersey registered limited liability partnerships and approved foreign limited liability partnerships.
These partnerships still need to complete a Partnership Combined Notification. The Notification provides Revenue Jersey with basic information to confirm that partners are properly disclosing their share of taxable partnership profits. It also enables partnerships to confirm whether they fall within Jersey's economic substance law and, if so, whether they meet the economic substance test.
The information included in the Partnership Combined Notification depends on factors including:
- the nature of the business undertaken by the partnership
- the residence status of the partners
- whether the partnership falls within the definition of a 'collective investment vehicle'.
Registering a partnership for tax
Trading in Jersey
If your partnership intends to trade in Jersey, you'll need a business licence before you can start trading.
You can apply for a business licence by completing a new business application form and sending it to the business licensing team. The information on this form will be shared with Revenue Jersey
If, on formation, your partnership is required to register with the Jersey Financial Services Commission (JFSC), the JFSC will provide Revenue Jersey with basic information about the partnership. You will be contacted if Revenue Jersey requires more information to issue a Taxpayer's Identification Number to the partnership.
Otherwise, you can register your partnership directly with Revenue Jersey.
Partnership and responsible partner notification
New partners arriving in Jersey are also required to register with Revenue Jersey.
Registering for tax and getting a tax identification number
Nominating a responsible partner
The responsible partner is responsible for completing the Partnership Combined Notification on behalf of the partnership. The responsible partner can be nominated using the partnership notification.
If the partnership does not nominate a partner to act as the responsible partner, or that nominated partner does not meet their tax compliance obligations, the Comptroller may nominate a partner to act as the responsible partner
Submitting the Partnership Combined Notification
The Notification can only be completed and submitted online on the dedicated Tax Office Online System.
Paper or PDF returns are not valid. Notifications submitted in any other format may be liable to late filing penalties.
The Notification must be submitted by 30 November after the year of assessment.
Types of partnership
General partnership
This is an arrangement where two or more persons agree to share in all profits, assets and legal liabilities. General partnerships have unlimited liability.
A partner's share of the general partnership profits should be declared in the partnership income section of their personal tax return.
Limited partnerships (LPs)
This applies to all partnerships that have one or more general partners and one or more limited partners. It doesn't matter if it's established under Jersey or non-Jersey law.
The profits or gains of limited partnerships are assessable on the partners if they are resident in Jersey.
Resident partners are required to declare and pay the tax on their share of any partnership income.
Incorporated limited partnerships (ILPs)
The provisions of the tax law that relates to these partnerships can only be applied to an ILP that's established under the Incorporated Limited Partnership (Jersey) Law 2011.
The profits and gains arising from international activities of ILPs are treated as profits or gains of the partners if they are resident in Jersey.
Resident partners are required to declare and pay the tax on their share of any partnership income.
Separate limited partnerships (SLPs)
The provisions of the tax law that relates to these partnerships can only be applied to an SLP that's established under the Separate Limited Partnership (Jersey) Law 2011.
The profits and gains arising from international activities of SLPs are treated as profits or gains of the partners if they are resident in Jersey.
Resident partners are required to declare and pay the tax on their share of any partnership income.
Limited liability partnerships (LLPs)
The provisions of the tax law that relates to these partnerships can only be applied to an LLP that's established under the Limited Liability Partnership (Jersey) Law 1997.
The profits and gains arising from international activities of LLPs are treated as profits or gains of the partners in they are resident in Jersey.
Resident partners are required to declare and pay the tax on their share of any partnership income.
International activities are defined in the law as 'business activities carried on outside Jersey'. The term 'business activities' includes investment activities.
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Partnerships controlled abroad
If the control and management of the partnership is abroad and consists of trading operations in Jersey, the profits or gains chargeable to tax are limited to the profits of the trading operations within the Island.
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