Jersey Treasury Minister Confirms No Plans to Increase Business Taxes, Emphasizes Importance of Competitiveness in Finance Center

Elaine Millar, Jersey’s Treasury Minister, recently announced that there are no plans to increase business taxes in the near future. The standard rate of company tax in Jersey is zero%, with finance firms paying 10% under the ‘zero/ten’ system. The government collects taxes on income and goods and services but does not impose capital gains or inheritance tax.

While Jersey’s taxes on wages and salaries contribute significantly to government revenue compared to most other places globally, Deputy Jonathan Renouf has suggested that the island should expand its tax base beyond just income tax and taxes on spending. However, Minister Millar emphasized the importance of maintaining competitiveness in the finance center and stated that no additional taxes, including business taxes, are currently being considered.

The minister also highlighted that Jersey residents pay less income tax compared to those in the UK. The 5% GST charged on goods and services in Jersey is lower than the 20% VAT in the UK. Furthermore, large multinational corporations with a group turnover exceeding €750m will be subject to a 15% tax rate from 2025 to comply with international taxation reforms approved by the G20 in 2021.

Overall, the government of Jersey is cautious about introducing new taxes that could impact the competitiveness of the finance center but acknowledges the need for a balanced tax system that does not unduly burden individuals.