• Sat. May 25th, 2024

Jersey Treasury Minister Addresses Balancing Tax System and Competitiveness in Finance Center

BySamantha Nguyen

Mar 26, 2024
Minister refuses to implement immediate business tax increase in Jersey

Jersey Treasury Minister Elaine Millar recently declared that there are no immediate 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. While the government collects taxes on income and goods and services, it does not impose capital gains or inheritance tax.

According to Statistics Jersey, taxes on wages and salaries contribute significantly to government revenue compared to most other places globally. Deputy Jonathan Renouf suggested that Jersey should expand its tax base beyond just income tax and consumption taxes to reduce the burden on individuals. However, Minister Millar highlighted the importance of maintaining competitiveness in the finance center, stating that no additional taxes, including business taxes, are currently being considered.

The minister also emphasized that Jersey residents pay far less income tax compared to those in the UK, with a 5% GST charged on goods and services lower than the 20% VAT in the UK. Additionally, 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.

In conclusion, while Jersey remains cautious about introducing new taxes that could impact its competitive position as a finance center, it acknowledges the need for a balanced tax system that does not unduly burden individuals.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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