OVERSEAS CONTRACTORS:

Employee Benefits Trusts (EBTs)

EBTs are discretionary trusts established by employers to benefit their employees generally. Instead of paying remuneration directly in the form of a salary an employer can choose to make a payment into an Employee Benefit Trust. The trustee exercises discretion in the payment of benefits from the EBT. The payment into an EBT by the employer would not normally be regarded as a payment to a particular employee so that it should not form part of an employee’s income and therefore be taxable at that time.

Employees may be taxable, depending on their country of residence, when they receive benefits from an EBT. However, careful planning of such payments can reduce the tax liability.

EBTs pay no tax in Jersey and income and gains within the EBT can grow tax free. As well as having its own EBT for the benefit of those clients using HERS for particular arrangements, HERS has considerable experience in the management of EBTs and their establishment and administration.

We also offer other professional financial services:

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