ARTICLE · 30 MAY 2023

Crown Dependencies Announce Joint Approach To Pillar Two Framework

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On 19 May 2023, Treasury Ministers from Guernsey, Jersey and the Isle of Man announced that they have agreed on a joint approach to the implementation of the Organisation for Economic Co-operation and Development's...

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On 19 May 2023, Treasury Ministers from Guernsey, Jersey and the Isle of Man announced that they have agreed on a joint approach to the implementation of the Organisation for Economic Co-operation and Development's (OECD) Pillar Two global minimum tax framework for large multinational groups.

The decision ensures certainty for businesses in each of the jurisdictions.

Guernsey, Jersey and the Isle of Man each intends to implement an "Income Inclusion Rule" (IIR) and a domestic minimum tax to provide for a 15% effective tax rate for large in-scope multi-national organisations (defined as those with annual global revenue above €750 million) from 2025. Most businesses in Guernsey and Jersey will be outside of the scope of Pillar Two and will therefore see no change to their current corporate tax rates.

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