Crown Dependencies agree joint approach to taxation reforms

Alex Allinson said the new rules would not affect the majority of Isle of Man companies

Large multinational companies on the Isle of Man, Jersey and Guernsey are set to be taxed 15% from 2025.

The three Crown Dependencies have agreed a "joint approach" to meet reforms to international taxation rules approved by the G20 in 2021.

The new rules will apply to businesses with a group turnover of more than €750m (£650m).

In a joint statement, the governments said the decision "ensures certainty" for businesses in the three areas.

Talks with firms would continue to "gather further information and to provide appropriate notice to allow businesses to prepare for these changes", the statement said.

Under current rules on the Isle of Man, only large retailers and banking businesses are taxed 10%, while land and property income is taxed at 20%.

In Guernsey, banking and insurance firms are taxed at 10%, with large retail businesses and landownership and rental income paying 20%.

Jersey's system sees certain financial services taxed 10% with utility companies, larger retailers and property development and rental income taxed at up to 20%.

Manx Treasury Minister Alex Allinson said although the Isle of Man was "well-placed to adopt these international tax reforms because of its existing corporate income tax system", it was important to "allow enough time to ensure these planned changes are right first time".

Deputy Mark Helyar, Treasury lead for the States of Guernsey, said the change would ensure the islands stayed "at the forefront of emerging global norms in tax matters", and would "continue to work together as it becomes clear about how the rest of the world" would act on the reforms.

Jersey's Minister for Treasury and Resources, Deputy Ian Gorst said "careful engagement with industry at home and around the world" would ensure Jersey maintained its internationally competitive reputation.

The new rules would not apply to the majority of companies, which would remain within the the three island's current corporate tax regimes.

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