Jersey’s Tax System Remains Unchanged: No Immediate Plans to Increase Business Taxes, Says Treasury Minister

Minister stands firm against sudden business tax hike in Jersey

The government of Jersey has no immediate plans to increase business taxes, as stated by Treasury Minister Elaine Millar. Currently, the standard rate of company tax in Jersey is 0%, with finance firms paying 10% under the ‘zero/ten’ system. The government collects tax on income and 5% on goods and services, but does not collect capital gains or inheritance tax. Taxes on wages and salaries make up a higher proportion of government revenue in Jersey than in most other places in the world.

However, some individuals are urging the minister to reconsider the current tax system to reduce the burden on individuals. Deputy Jonathan Renouf has suggested looking at taxes beyond just income tax and taxes on spending. Despite these suggestions, Minister Millar emphasized that Jersey’s tax mix is not unusual for an international finance center. She explained that additional taxes could impact the competitiveness of the finance center and that there are currently no plans to introduce other types of taxes. While she did not rule out the possibility entirely, she confirmed that there are no immediate plans to look at business taxes.

In comparison to the UK, people in Jersey pay significantly less income tax, and the 5% GST in Jersey is lower than the 20% standard rate of VAT in the UK. Additionally, large multinational companies will be taxed 15% from 2025 under new international taxation rules approved by the G20 in 2021.

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