Income Tax (Amendment of Law – Taxation of Cannabis Companies) (Jersey) Regulations 2021

Jersey coat of arms

Income Tax (Amendment of Law – Taxation of Cannabis Companies) (Jersey) Regulations 2021

Made                                                                                           24th November 2021

Coming into force                                                                           1st January 2022

THE STATES make these Regulations under Article 143AA of the Income Tax (Jersey) Law 1961 –

1        Income Tax (Jersey) Law 1961 amended

These Regulations amend the Income Tax (Jersey) Law 1961.

2        Article 123C (non-financial services companies) amended

(1)     For the heading to Article 123C there is substituted –

123C     Tax rate for companies”.

(2)     After Article 123C(1)(b)(iii) there is inserted –

“(iv)   a company in the cannabis industry (as defined in Article 123DA).”.

 

3        Article 123DA (companies in the cannabis industry) inserted

After Article 123D there is inserted –

123DA  Companies in the cannabis industry

(1)     A company is in the cannabis industry for the purpose of Article 123C(1)(b)(iv) if it carries on one or more of the following activities –

(a)     cultivates cannabis plants;

(b)     processes cannabis plants for any purpose;

(c)     distributes, sells or further processes cannabis plants that have been cultivated or processed under paragraph (a) or (b) by a connected company.

(2)     In this Article –

cannabis plant” –

(a)     has the meaning given to cannabis by Article 1(1) of the Misuse of Drugs (Jersey) Law 1978; but

(b)     does not include industrial hemp;

industrial hemp” means a cannabis plant with a tetrahydrocannabinol content not exceeding 0.2%, cultivated for the purpose of using only –

(a)     the mature stalk of the plant;

(b)     fibre produced from the mature stalk of the plant; or

(c)     the seed of the plant.”.

4        Citation and commencement

These Regulations may be cited as the Income Tax (Amendment of Law – Taxation of Cannabis Companies) (Jersey) Regulations 2021 and come into force on 1st January 2022.

 

 


Page Last Updated: 24 Nov 2021