Jersey citizens may get tax breaks
Jersey is considering cutting personal and corporate tax rates, in effect removing many of the advantages offered to international investors but denied to its residents.
While a decision has yet to be taken on the matter, Frank Walker, de facto chancellor of the self-governed island, was reported in the FT as saying: ‘Things are changing and we are not turning our face and pretending they are not.’
He added that the island was responding to moves in Ireland and the Isle of Man, which have unveiled plans to cut rates of corporate tax by half to just 10%.
Jersey is considering scrapping tax regimes, which provide overseas investors tax advantages over citizens, including cutting personal and corporation tax by between 5% and 7.5%
Jersey is one of a growing list of financial centres (including Guernsey, Bermuda, the Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius the Netherlands Antilles, San Marino and the Seychelles) who have committed themselves to reforming their tax systems. Jersey will not be included in an OECD blacklist due to be published at the end of July.
The organisation claims the reforms are aimed at ensuring both member and non-member OECD countries can recover tax revenues lost due to favourable tax policies offered by tax havens.
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UK tax havens act to avoid blacklist