More businesses to pay tax

Wednesday 14 December 2016

Jersey’s Treasury Minister has indicated more businesses will be asked to pay tax in future, following a review of the Island’s tax system.

Speaking as part of the Budget 2017 debate this week, Senator Alan Maclean said that the Treasury was asking for more information from those business which currently don’t pay corporate tax – he said in the future, the Treasury would be looking to broaden the “scope” of the 10% tax rate, so that more businesses would fall into it.

Currently financial services businesses pay tax at 10%, with utilities in a 20% band.

But a 0% rate will remain for other local and non-local businesses – to remain compliant with the EU code group -  although it seems that fewer businesses will fall into this bracket in the future.

Senator Maclean said: “We are collecting more information on companies rated at 0% tax to inform future discussions about improving our corporate tax system. It is absolutely imperative that this information is collected before changes are considered, but I assure members, that Ministers as well as representatives of the finance industry are determined that they are delivered.

“I will consider over the coming year the opportunity to ask that some larger businesses are asked to contribute through the corporate tax regime , following the examples of IOM and Guernsey.

“We will also examine the technical definition that determines which financial business pay tax at 10% rate and explore the opportunities to extend the scope of those businesses which are taxable.”