The schemes now will not be formally adopted until January, a spokeswoman said.
As reported, ECOFIN had been expected to approve the revised zero-10 corporate tax schemes on Wednesday, following the recommendations of the Code of Conduct Group on Business Taxation, which had been asked to consider whether they were harmful to EU member countries.
Businesses on both islands have been keen to see the zero-10 matter concluded, as uncertainty about corporate tax makes long-term planning difficult. The approval by ECOFIN, however, is regarded by those on the islands as largely a formality, now that the Code of Conduct Group has said it has no problems with their zero-10 schemes, now that they have been revised to accommodate its concerns.
Under zero-10 regimes, most businesses pay no corporation tax, while some industries, such as banks, pay 10% and a few pay 20%.
The Code Group announced the review of Jersey and the Isle of Man’s zero-10 schemes in 2009 in response to pressure from some higher-tax EU countries, which regard zero-10 schemes as predatory.
Guernsey also has a zero-10 tax scheme, which Guernsey Chief minister Lyndon Trott said yesterday will be examined by the Code Group next year.
