Any charity established in Jersey is strictly liable to income tax unless it is exempt under the provisions of Article 115(a) of the Income Tax (Jersey) Law 1961 which states:

Exemption from income tax shall be granted in respect of any income derived from the property of a corporation, association or trust established (in the Island) for a charitable object or for the service of any church or chapel, or any building used solely for the purpose of divine worship and in so far as such income is applied to those purposes.

The purposes which the law considers to be charitable are grouped under the following four general heads:

1. Relief of poverty
2. Advancement of education
3. Advancement of religion
4. Other purposes of a charitable nature beneficial to the community, not falling under any of the preceding heads

In order for a corporation, association or trust to be granted exemption under the provisions of Article 115(a) of the Income Tax (Jersey) Law 1961 the Comptroller must be satisfied that it has been established for a charitable object, i.e. It’s objects or the purpose for which it exists falls under one of the aforementioned heads.

An application for exemption must be in writing to the Comptroller and accompanied by a copy of the memorandum of articles of association, the trust deed or the constitution – whichever is appropriate. Similar applications may be made by charities established in the United Kingdom or Guernsey. In these cases exemption from income tax is granted under the provisions of Article 115(aa) or (ab) of the Law.