15% Global Minimum Tax Rate: Draft Legislation Lodged In Jersey

Following Jersey's intention to implement the OECD proposals for a 15% global minimum tax rate (known as "Pillar 2") in May 2024, draft legislation has now been lodged introducing a new standalone Multinational Corporate Income Tax (MCIT) to sit alongside Jersey's existing corporate income tax regime, together with an Income Inclusion Rule (IIR)."

The draft legislation is expected to be debated in early October, with a view to the new rules coming into effect on 1 January 2025.

Recap - what is Pillar 2?

Pillar 2 is an OECD initiative that ensures that multinational enterprises with a consolidated annual turnover of at least €750 million (MNEs) pay a minimum blended "effective tax rate" (ETR) of 15% on their worldwide profits, no matter where those profits arise.