Offshore financial centre and popular expat destination Jersey will not be raising its favourable income tax rates.
Recent proposals to increase the 20 percent rate that makes Jersey such a popular destination for high-net worth individuals were rejected following a vote by the island’s legislative assembly.
The vote was carried out on April 6 and the majority felt that an increase was not a good idea, winning the vote 39 against 12.
Treasury Minister Phillip Ozouf applauded the decision: “The Treasury conducted a wide-ranging consultation on personal taxation last year, after which the Council of Ministers supported the conclusion that a higher rate of income tax would have negative consequences. That sent a strong and powerful message that we support maintaining the foundation of our economy – our 20 per cent income tax rate.
He added: "I hope this resounding vote ends all speculation that the Island is anything other than committed to the long-standing, standard tax rate of 20 per cent. The message that goes out today is one of certainty, stability and competitiveness. With sound public finances, no debt and a firm three-year plan to bring our budget back into balance, we can now concentrate on attracting high quality, lucrative business and on creating new jobs for Islanders.”
This outcome ensures that Jersey remains one of the best places for offshore banking.