Jersey has signed a Double Taxation Agreement (DTA) with Luxembourg.

It becomes the eighth DTA that the Channel Isle has signed that complies with the OECD Model Agreement.

Geoff Cook, CEO of Jersey Finance, said: 'The DTA with Luxembourg is a welcome addition, there are strong commercial links between some firms in Jersey and those in Luxembourg.

'The agreement will help to facilitate further business flows between the two jurisdictions, while once again demonstrating our commitment to international standards of information exchange through engagement at a political and regulatory level with countries in the EU.'

The agreement was signed on Thursday at Luxembourg's London embassy by Jersey's assistant chief minister with responsibility for external relations, Sir Philip Bailhache, and by the Charge d'Affaires, Mrs Beatrice Kirsch, for the Government of the Grand Duchy of Luxembourg.

Jersey's seven other DTAs are with Singapore, Malta, Estonia, Qatar, Hong Kong, Guernsey and the Isle of Man. Another 31 agreements are Tax Information Exchange Agreements (TIEAs).