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Multinational Corporate Income Tax (Chargeable MNE Group - Minimum Threshold Amount) (Jersey) Order 2024

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 10 December 2024:

Decision Reference:  MD-TR-2024-956

Public

Subject: Draft Multinational Corporate Income Tax (Chargeable MNE Group- Minimum Threshold Amount) (Jersey) Order 2024

 

Report Title: WR - Draft Multinational Corporate Income Tax (Chargeable MNE Group- Minimum Threshold Amount) (Jersey) Order 2024

Public

Decision(s):

The Minister decided to make the Draft Multinational Corporate Income Tax (Chargeable MNE Group- Minimum Threshold Amount) (Jersey) Order 2024

Reason for Decision(s):

Under Article 5(4) a multinational group is eligible to elect to be exempt from being a “chargeable MNE group” under the Multinational Corporate Income Tax (Jersey) Law 2024 (MCIT Law), if the minimum threshold amount of £100,000 is met (i.e. the net GloBE income amount of the group). The policy intention underlying Article 5(4) and the Order is a simplification measure that is permissible under the OECD Pillar 2 common approach. This Order is intended to come into force on 1 January 2025, which is the same day on which the MCIT Law comes into force.

Resource Implications: It is possible that there could be a marginal loss of tax revenue resulting from making the Order, however, this is a competitiveness measure and could support the wider attractiveness of Jersey as an International Finance Centre. There are, however, no additional manpower implications.

 

Action Required: The Deputy Comptroller to notify the Publications Editor at the States Greffe that the Order has been made and to request the Greffier of the States to arrange for the making of the Order to be notified to the States.

Signature:

 

 

Signed By: Minister for Treasury and Resources

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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