Jersey’s Treasury Minister: No Immediate Plans to Increase Business Taxes in the Finance Center

Jersey’s Treasury Minister, Elaine Millar, recently stated that she has no immediate plans to increase business taxes in Jersey. 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.

Statistics Jersey revealed that taxes on wages and salaries contribute significantly to government revenue in Jersey. However, some are urging the minister to reconsider the tax system to reduce the burden on individuals. Deputy Jonathan Renouf 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 stated that additional taxes could impact the international competitiveness of the finance center, and the government is not currently considering introducing 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, Millar highlighted that 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. She also mentioned that large multinational companies will be taxed 15% from 2025 under new international taxation rules approved by the G20 in 2021.