Wed. Jun 19th, 2024
Minister stands firm against sudden business tax hike in Jersey

Elaine Millar, Jersey’s Treasury Minister, recently announced that she has no immediate plans to raise business taxes in the island nation. Currently, companies in Jersey pay 0% standard tax, with finance firms subject to a 10% rate under the ‘zero/ten’ system. The government collects tax on income and 5% on goods and services but does not impose capital gains or inheritance tax. Income and salary taxes make up a higher proportion of government revenue in Jersey compared to most other countries worldwide.

According to Statistics Jersey, income and salary taxes contribute significantly to government revenue in the island nation. However, some have urged Millar to reconsider the tax system to reduce the burden on individuals. Deputy Renouf suggested looking beyond just income tax and taxes on spending.

Despite these suggestions, Millar emphasized that Jersey’s tax mix is not unusual for an international finance center. She stated that introducing additional taxes could harm the competitiveness of the finance center and that there are currently no plans to consider new types of taxes. Although she did not completely rule out the possibility, Millar 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 GST in Jersey is lower than the standard rate of VAT in the UK. She also mentioned that large multinational companies will be subject to a 15% tax rate from 2025 under new international taxation rules approved by the G20 in 2021.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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