The governments of Guernsey, the Isle of Man and Jersey, at a
meeting on 17 May, reaffirmed their commitment to a joint approach
to the OECD's Pillar Two framework and noted they would shortly
be commencing their respective legislative procedures to a common
timeline with introduction for accounting periods commencing on or
after 1 January 2025.
Pillar Two establishes the framework for a global 15% minimum
effective tax rate for large multinational enterprises (MNEs),
calculated at a jurisdictional level, with a top-up charge imposed
on any low-taxed profits.
The three Crown Dependencies intend to implement an 'Income
Inclusion Rule' and a domestic minimum tax to provide for a 15%
effective tax rate for large in-scope MNEs, from 2025, while also
remaining committed to continue offering attractive and globally
competitive investment environments.
