blog.gov.jeIn this article, Cora O’Brien, Deputy Comptroller of Revenue Jersey, outlines how the
Island’s international tax strategy is evolving as part of the Financial Services
Competitiveness Programme, ensuring Jersey remains a stable, reputable, and
attractive jurisdiction for global investment in an increasingly complex tax landscape.
Jersey’s international finance centre (IFC) is the powerhouse of our economy, generating 40% of the Island’s total tax revenues. This includes a broad spectrum of services across banking, funds, investment management, fintech, private wealth, and corporate services. A thriving IFC isn’t just good for business, it underpins the sustainability of our public services. To ensure its long-term success, Jersey must maintain a tax platform that provides stability, certainty, neutrality, and strong reputational standing.
This is where Jersey’s international tax strategy plays a critical role. It is central to the competitiveness of our IFC and Revenue Jersey will be leading a review of this strategy as part of the Government’s wider Financial Services Competitiveness Programme. Our core tax platform is strong:
- Our 0/10 regime
- Our implementation of Pillar 2
- Our tax policy to build the skills and talent of tomorrow
- Our Double Taxation Agreement strategy
- Our tax information exchange programme and economic substance regime, and
- Our wider policy to stimulate entrepreneurship and enable digital and
technology innovation in the Island.
But we cannot be complacent as other IFCs mature and new entrants emerge to compete with us. Jersey needs the best and most appropriate tax policy to support our international competitiveness and our reputation as a safe harbour for investment – particularly in these uncertain times.
Jersey’s book of investment business is truly global and, in recent times, we have worked hard to find the right path for Pillar 2 implementation that meets the needs of both US and non-US investors. Some of the challenges that Jersey faced in finding this path are now front and centre of the discussions at the OECD, as the US presses for side-by-side US and Pillar 2 regimes.
Jersey is at the table at the highest levels in these discussions and is contributing to the work in finding a negotiated global solution. It is only through good tax administration that we can achieve the full benefit of our wider tax policy aims.
Work has already started to drive out unnecessary frictions that have developed over time in our tax compliance processes and to work on developing an exciting, enhanced onboarding experience for businesses and their advisors. The result should be better future customer service and reduced time spent on tax compliance for everyone, enabling more productive use of time on higher value activity for the Island.
Although this strategic work is aimed primarily at IFC businesses and their service providers, its success could pave the way for broader transformation in how we deliver tax services and ultimately raise revenue, which will benefit all Islanders. This is tax policy with purpose: designed to strengthen Jersey’s position on the world stage and secure long-term prosperity at home.
For more information, please see: Financial Services Competitiveness Programme.