Jersey Treasury Minister Elaine Millar Reveals No Immediate Plans to Increase Business Taxes: An Inside Look at the Island’s Tax System

Minister stands firm against sudden business tax hike in Jersey

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.

While some have suggested reconsidering the tax system to reduce the burden on individuals, 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.

Despite these remarks, Millar also highlighted that people in Jersey pay significantly less income tax compared to the UK. Additionally, she mentioned that large multinational companies will be taxed 15% from 2025 under new international taxation rules approved by the G20 in 2021. Overall, Millar emphasized that while there may be suggestions for change, there are currently no immediate plans to look at business taxes in Jersey.

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