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Businesses that invest in technology to help them meet their regulatory obligations will be eligible for a 150% ‘RegTech Super-Deduction’ under Ministers’ proposed spending plans.
Released last week, the draft Government Plan contains a package of tax break measures for 2024 to 2027 worth around £450,000.
Among them is what's been termed a 'super-deduction' for businesses employing RegTech, with the Government Plan explaining: “By investing in technologies that free up resources otherwise devoted to regulatory compliance, these businesses can focus their creativity on high-value strategic ambitions to ensure the island’s sustainable growth and continued prosperity."
Jersey's Chamber of Commerce has, however, questioned the lack of detail surrounding the initiative and exactly how funds would be used.
In response, Treasury Minister Ian Gorst today published a blog which sought to provide more information.
Deputy Gorst wrote: "Harnessing investment in technology will drive improvements in Jersey's productivity and international competitiveness and it will help us make best use of our scarce human resources. There is huge potential for the Island waiting to be grasped."
Pictured: Minister for Treasury and Resources, Deputy Ian Gorst.
He continued: "At a time when staff in Jersey are in huge demand for risk and compliance roles in this sector, the accelerated adoption of regulatory technology has the capacity to bring transformational change.
"Firms of all sizes will be able to work with service providers to speed up client onboarding using digital technology.
"This will deliver more efficient processes and enable staff and other scarce internal resources to be focused on more targeted monitoring of risk and higher value-added roles. The targeting of resources in this way should bring economic benefit not only to the firms themselves but more broadly across the island's economy.
"The new 150% super-deduction that we are proposing on a pilot basis for 2024 and 2025 (with the potential to be extended if successful) will be an important contribution to this work.
"It will cover expenditure on hardware, software and training related to RegTech and is uniquely designed for entities regulated by the Jersey Financial Services Commission – a sector of the economy that pays corporate income tax."
Regulatory technology, or RegTech, is an emerging technology that involves using digital tools and processes that improve the way organisations manage their increasing regulatory compliance commitments.
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