ITIS exemption certificates for Jersey Contractors
Added by Nicholas F Walker
Individual Jersey contractors and subcontractors whose tax affairs are up to date, will be able to obtain an exemption certificate in relation to ITIS.
This will enable them to present the certificate to those persons that engage them for work and will allow them to be paid gross for their services rather than be paid at a reduced rate because the client is legally obliged to deduct income tax at source under the Installment system being introduced in January 2006. Quite how the public will be aware of their right or obligation to deduct tax at source is not clear. Nor is it clear how they will then account to the Comptroller in respect of tax they have withheld. The firm are watching developments with interest.
The tax office have confirmed the exemption certificates will not be available until September this year. ....and it is unlikely any businessman will get such a certificate unless their tax affairs are fully up to date and their tax has been paid.
This is going to be a very important document for Jersey privately run businesses.
