The States of Jersey has approved the introduction of provisions that allow the island to launch new International Savings Plans (ISPs).
Effective from 1 January 2019, the innovative plans, which have been approved by the Jersey tax authorities, enable multinational and international companies to set up savings plans in Jersey for non-resident employees.
It is anticipated that the product will have a particular appeal in the Gulf region, which is already a key market for Jersey’s finance industry and where there is a strong demand for such schemes.
The ISPs are designed to be tailored to meet the needs of employer and employee, enabling a payout to employees when their employment ends or on the occurrence of a major trigger event, which could include situations such as redundancy, ill health or divorce.
If multinational and international companies choose Jersey to set up their ISPs, they will be able to provide benefits to employees before the normal minimum pension age, which is currently restricted to 50 in Jersey.
Commenting on the new product, Geoff Cook, CEO of Jersey Finance, said: “Jersey prides itself on bringing innovative products to market and the ISP is the latest in a series of such products tailored to the needs of international business. Any major international firm or institution setting up ISPs will want to establish them in a reputable, well-regulated jurisdiction with a strong track record and Jersey clearly meets that criteria. While the appeal is international, we know from our close commercial ties in the Gulf region, that ISPs will be attractive to institutions based in the Gulf Cooperation Council States.”
Jersey’s Minister for Treasury and Resources, Deputy Susie Pinel, commented: “This scheme adds yet another ‘string’ to Jersey’s ‘bow’ when it comes to attracting business from overseas. Our Government has worked hard to modernise our legislation in line with international standards, so we can offer the best possible solutions for large institutions and employees. We can now compete in this field, on a global platform, offering effective and efficient solutions for people working abroad.”