15 February 2011
The Council of Ministers has announced that Jersey is to maintain its zero-ten tax regime, following a recent review by the EU Code of Conduct Group and High Level Working Party.
Concerns over deemed distribution and attribution rules were raised by the EU, and the decision has been taken to remove these provisions with effect from January 2012.
In a statement made to the States Assembly, the Chief Minister, Senator Terry Le Sueur, said “This action allows us to retain our corporate tax regime while meeting the concerns of the EU.
"Maintaining tax neutrality in a simple and transparent way provides stability and certainty for businesses operating here and sends a clear signal that Jersey continues to provide a competitive tax system which will safeguard the island’s future economic well-being.”
The withdrawal of deemed distribution and attribution rules is subject to the agreement of the States Assembly, as legislation will be needed. Work will continue to monitor the impact of this change, but Treasury forecasts estimate it will create a temporary cash flow issue rather than a reduction in the total tax take.
The EU Code of Conduct Group meets on 17 February 2011 and has been informed of this decision to remove the deemed distribution and attribution provisions.
Statement by Chief Minister on Zero-ten - made to States Assembly on 15 Feb 2011