MINISTERS have welcomed the introduction of new corporate tax rules from next year which they say maintain Jersey’s reputation as “a forward-thinking jurisdiction”.
States Members voted unanimously this week to introduce the 15% tax rate on companies in Jersey with global revenues of more than 750 million euros in a move which will boost States income by tens of millions. It fulfils a commitment made by the Island last year and will affect around 4% of Island companies.
For accounting periods starting on or after 1 January 2025, the affected Jersey companies and branches of multinational groups will pay an effective rate of 15% on their Jersey profits under the new Multinational Corporate Income Tax. Jersey’s MCIT applies the OECD Model Rules and takes account of certain instances of double taxation, the government said.
Treasury Minister Elaine Millar said the government was committed to providing an internationally competitive business environment, and was working with industry and the Jersey Financial Services Commission to that end.
“One of the outcomes will be a new Pillar 2-compliant Qualifying Refundable Tax Credit regime. This regime will be effective in incentivising business growth and deepening business ties with Jersey,” Deputy Millar said.
External Relations Minister Ian Gorst commented: “The passing of this legislation maintains Jersey’s reputation as a forward-thinking jurisdiction that is fully aligned with international tax initiatives developed by standard-setting bodies like the OECD. I am confident that Jersey is well positioned to implement this new Pillar 2 regime and maintain a globally competitive business environment for our taxpayer customers worldwide.”
The government said taxpayers affected by the introduction of the new tax measures, and their advisers, could contact Revenue Jersey officers with any questions or requests by email at pillar2@gov.je.
