A group of the world’s richest nations have agreed in principle to a new global tax standard that will usher in the end of Jersey's 'Zero-Ten' regime.
The island has been able to attract business by keeping its corporate tax rate on profits at 0%, while financial services institutions have paid 10%.
Following calls by the US Administration for a new international standard to stop companies from shifting their profits to so-called ‘tax havens’, the G7 Group agreed a global minimum tax rate of 15%.
It is targeted primarily at multi-national tech giants such as Amazon, Apple, Facebook and Google.
Pictured: The G7 is a group made up of the world's richest nations.
The full effects of this are yet to be seen, with the tax reforms expected to take years to come to fruition.
The OECD has committed to reach agreement by July following years of negotiations.
Jersey's Government and Jersey Finance have been contacted for comment.
Pictured top: UK Chancellor Rishi Sunak announced the agreement at the weekend, saying: "These seismic tax reforms are something the UK has been pushing for and a huge prize for the British taxpayer – creating a fairer tax system fit for the 21st century."
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