Minister stands firm against sudden business tax hike in Jersey
Business

Jersey’s Treasury Minister Dismisses Calls for Business Tax Increase Amidst Discussion of Income Tax Reform

Elaine Millar, Jersey’s Treasury Minister, has stated that she does not plan to increase business taxes in the near future. 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.

According to Statistics Jersey, taxes on wages and salaries contribute significantly to government revenue in Jersey. However, some are calling for a review of the tax system to reduce the burden on individuals. Deputy Renouf suggested looking at taxes beyond just income tax and 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 competitiveness of the finance center and that there are no immediate plans to look at business taxes. While she did not rule out the possibility entirely, she confirmed that there are no immediate plans to consider other types of taxes.

In comparison to the UK, Millar highlighted that people in Jersey pay significantly less income tax, and the GST (Goods and Services Tax) in Jersey is lower than the VAT (Value Added Tax) standard rate of 20% 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.

Overall, it seems clear that while some may be pushing for changes to Jersey’s tax system, Minister Millar remains committed to maintaining its current structure as part of her efforts to maintain its position as a competitive international finance center.

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