The 'pillar two' tax is designed to create a level financial playing field across more than 130 jurisdictions for the world's largest multinational companies.
government says the island needs to "play its part" in introducing a new tax for the largest multinational companies.
The changes would mean companies based in the islands with a turnover of more than €750 million euros would be taxed at 15% from 2025. Guernsey similarly has a 0% standard rate of company tax but does levy some industries at 10% and 20%.Deputy Ian Gorst, Jersey's Assistant Treasury Minister, told ITV News: "Those businesses will have to pay the tax wherever they are globally and therefore they can't just leave Jersey and avoid paying the tax.
Deputy Gorst explained: "There are many reasons why Jersey is competitive and attractive to large multinational companies and we will make sure that we continue to be." With an increasingly global economy, it is designed to tackle what is described as 'profit shifting'.Locate Jersey, who help the wealthy move to the island, advertises "low personal and business taxes".So the question is, does introducing this tax damage that selling point?
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