| In
this Section:
- ISLE
OF MAN THE COUNTRY AND ITS ECONOMY
- THE ISLE OF MAN
- THE
ECONOMY OF THE ISLE OF MAN
- ISLE OF MAN SERVICES
DIRECTORY
- MAP OF THE ISLE OF MAN
Isle
of Man Executive Summary
Isle of Man Not in EU Fiscal Area
The
Isle of Man is an English speaking dependency
of the British crown but has never formed part
of the United Kingdom. The Isle is politically
stable and enjoys parliamentary government without
party politics. Its 1,000 year-old parliament,
Tynwald presides over the Island's domestic
affairs including, specifically, taxation. Britain
is responsible for the Island's defence and
foreign affairs. The island forms part of the
EU single market and VAT area but is otherwise
not part of the EU fiscal area. The Isle of
Man has an English common law type legal system
and tends to follow English legislation. There
is an infrastructure of sophisticated legal
and other professional services. The Isle has
a Financial Supervision Commission with a great
deal of experience in overseeing and regulating
sensitive financial areas. The island's currency
is the pound and there are no exchange controls.
There are frequent flights to a number of UK
airports.
Economy
Buoyant; Taxes Reduced!
The
Isle of Man’s gross domestic product increased
in the fiscal year 2004/05 by 5.2% in real terms,
representing the 22nd consecutive year of economic
growth.
Over
a period of some years, the government has been
gradually abolishing corporate income tax altogether,
and as from 2006 it applies only to financial
institutions.
There
is no capital transfer tax, no surtax and no
corporation tax, no wealth tax, no death duty,
no capital gains tax and no gift tax. Value
added tax is collected by the Isle of Man Customs
& Excise at the same rates which apply in
the United Kingdom.
In
July, 2007, international ratings agency Standard
& Poor's renewed its 'AAA' international credit
rating on the Isle of Man, reflecting the island's
robust economy and strong fiscal position.
IOM
Lowtax Specialisations
The
Isle of Man has strong banking, investment fund
and captive insurance sectors, with a well-developed
advisory and financial infrastructure. There
are a number of business formats, Limited Partnerships
and Limited Liability Companies (LLCs). There
is an active trusts sector, and in 2001 the
island began to offer on-line gambling licences.
The
Isle of Man v. the EU and the OECD?
The
Isle of Man's unique situation with regard to
the EU is both a strength and a weakness. The
island will remain a favoured base for holding
and trading companies working into the EU, and
for e-commerce activity; but it has the EU and
the OECD to contend with. Along with Jersey
and Guernsey, however, the Isle of Man responded
to its inclusion on the OECD's black-list by
making it clear that it will not be pushed around
to the detriment of its offshore sector, and
in making its 'commitment' to the OECD in December
2001 the Island made it clear it would only
agree to information-sharing if its major offshore
competitors do so too.
After
the EU agreed to a mixed information-sharing
and withholding tax regime under its Savings
Tax Directive in early 2003, the Isle of Man
decided, along with Jersey and Guernsey, to
apply a withholding tax to the returns on personal
savings.
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