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Amex Saved $241M on Jersey Taxes in 2025
7 Feb
Summary
- American Express reduced 2025 corporate income taxes by $241 million.
- Jersey's low tax rate and global minimum tax agreement contributed to savings.
- The Jersey effect lowered Amex's tax rate by 1.8 percentage points.
In 2025, American Express realized a substantial tax saving of $241 million through its operational activities on the island of Jersey. This disclosure, mandated by new accounting regulations requiring more granular corporate reporting, was not present in previous years. Jersey, a Crown Dependency in the English Channel, benefits from a 0% corporate income tax rate for most businesses.
This significant tax reduction was influenced by two main factors: Jersey's inherently low corporate tax structure and a 15% income tax rate introduced as part of a global agreement on corporate minimum taxes. Consequently, the financial benefits derived from Jersey operations effectively lowered American Express's overall tax rate by 1.8 percentage points for the year. The company's total cash tax payments for 2025 amounted to $3.2 billion, which included $1.8 billion in U.S. federal income tax.
