Embracing global tax initiatives - Jersey’s implementation of Pillar Two rules

Draft Pillar Two legislation has been published that will if enacted introduce local filing/payment obligations on multinational enterprise (MNE) groups operating in Jersey with effect from accounting periods commencing on or after 1 January 2025.

While the jurisdiction continues to maintain a tax regime that is guided by the principles of certainty and simplicity business tax reporting in Jersey is perhaps more involved than might be expected. There have been a plethora of changes over the last five years as Jersey implements global tax initiatives (in line with the government’s ‘good neighbour’ policy).

The latest of these initiatives to be implemented into draft legislation is the G20/OECD Inclusive Framework’s Pillar Two rules (referred to as ‘Pillar Two’ throughout). We are sure readers will be well versed in the background of Pillar Two and as such this article will not revisit the basics (there...