‘Zero ten’ tax is approved by EU
Two years after European threats prompted uncertainty over Jersey’s entire tax system and sparked crisis talks with the UK, EU ministers have accepted that removing the ‘deemed distribution’ clause has brought the tax package back in line.
Under the clause, resident shareholders were taxed on company profits whether or not they received them.
The decision means vindication for former Chief Minister Terry Le Sueur’s ‘wait and see’ approach to the EU’s issues over Jersey’s corporate tax rules, and has been welcomed by ministers in Jersey.
Chief Minister Ian Gorst said: ‘This brings to a very satisfactory conclusion the steps that were taken to satisfy the code group that Jersey’s corporate tax regime is now compliant with the code of conduct criteria.’