UK and International Tax news

Channel Islands Issue Statement On OECD Pillar Two Adoption

Wednesday 24th May 2023

The governments of Guernsey, Jersey and the Isle of Man have announced a joint approach to the OECD’s Pillar Two framework, based on the current international implementation of Pillar Two and discussions at the OECD.

The three Crown Dependencies approach will include the implementation of an “Income Inclusion Rule” and a domestic minimum tax to provide for a 15% effective tax rate for large in-scope multinational enterprises, from 2025.

In scope companies will include members of the largest multinational groups with worldwide revenues of at least €750 million per year located in Guernsey, Jersey and the Isle of Man. They will become subject to domestic tax measures aimed at establishing an effective tax rate of 15% on their taxable profits, as calculated in accordance with the Pillar Two rules.

For MNEs not in scope with companies resident in Guernsey, Jersey and the Isle of Man, they will continue to be subject to the islands’ 0%/10% corporate tax regimes.

If you would like further information on the above, please contact Keith Rushen on 0207 486 2378.

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