Jersey's Implementation Of The OECD Pillar Two Rules

The Government of Jersey has issued an update to the statement it released a year ago in relation to its plans to implement key aspects of the Pillar Two international tax reforms in Jersey.

In May 2023, Jersey announced its intention to implement a Pillar Two Income Inclusion Rule and a Domestic Minimum Tax from 2025. Jersey has now confirmed that it intends to achieve its 2023 commitment by introducing the following legislation:

1. An Income Inclusion Rule (IIR); and
2. A new stand-alone multinational corporate income tax (MCIT) to sit alongside Jersey's existing corporate income tax regime.

Jersey also confirmed that it will not be enacting an Undertaxed Profits Rule at this time.