The Government of Jersey is in the process of developing a new information technology solution aimed at facilitating the implementation of a 15% tax rate specifically targeting the largest corporations operating within the jurisdiction.
In October 2024, local lawmakers reached a unanimous agreement to align the island with an emerging global tax framework known as Pillar Two. This pivotal decision stipulates that companies with an annual global revenue of €750 million (approximately £623 million) or higher will be subject to a 15% tax on their profits.
Officials have expressed their dedication to ensuring that taxpayers receive exemplary customer service as Jersey transitions to the Pillar Two tax system. In this regard, Revenue Jersey has initiated the creation of a new IT portal designed for entities that fall under the Pillar Two tax regime.
Furthermore, the government has launched an expression of interest process to determine the requirements needed to successfully implement this system. Currently, most businesses in Jersey benefit from an absence of corporation tax, while financial institutions are subject to a 10% tax rate. It is anticipated that the introduction of the Pillar Two legislation could yield an additional £50 million annually for the island’s economy.
