Jersey Treasury Minister Rejects Immediate Business Tax Increases Amid Recommendations for Tax System Revision

Minister stands firm against sudden business tax hike in Jersey

The Treasury Minister of Jersey, Elaine Millar, recently stated that she has no immediate plans to increase business taxes in the island. Currently, companies pay 0% tax on their income, while finance firms pay 10% under the ‘zero/ten’ system. The government collects taxes on income and 5% on goods and services but does not impose capital gains or inheritance tax. In contrast to most other places worldwide, wages and salaries make up a higher proportion of government revenue in Jersey.

According to Statistics Jersey, taxes on wages and salaries are significant contributors to government revenue in Jersey. However, some individuals have urged the minister to reconsider the tax system to ease their burden. Deputy Jonathan Renouf suggested looking beyond just income tax and taxes on spending.

Despite these recommendations, Minister Millar emphasized that Jersey’s tax mix is not unusual for an international finance center. She argued that additional taxes could negatively impact the competitiveness of the finance center globally and that there are currently no plans to introduce new types of taxes. Although she did not rule out the possibility entirely, she confirmed that there were no immediate plans to consider business taxes.

When compared with the UK, people in Jersey pay less income tax than those in the UK do. Additionally, GST in Jersey is lower than VAT’s standard rate of 20% in the UK.

Finally, Millar mentioned that multinational companies will be subjected to a 15% tax rate from 2025 under new international taxation rules approved by G20 in 2021.

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