Jersey Treasury Minister Elaine Millar recently stated that there are currently no plans to increase business taxes in the island. The standard rate of company tax in Jersey is 0%, with finance firms paying 10% under the ‘zero/ten’ system. The government collects taxes on income and goods and services, but does not collect capital gains or inheritance tax.
The treasury minister also highlighted that Jersey residents pay significantly 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. Large multinational companies 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.
While Deputy Jonathan Renouf suggested broadening the tax base beyond just income and spending taxes to reduce pressure on individuals, 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. She believes that a balanced tax system is essential for ensuring economic stability and growth without putting undue pressure on individuals.