The
UK's three IOFCs, Jersey, Guernsey and the Isle
of Man have developed in different ways; the Isle
of Man is not dominated by any one particularly
activity, but has across-the-board strength in
the financial sector, with substantial business
in banking, fund management and captive insurance.
The Isle of Man has also encouraged manufacturing
and trading operations, which can be fiscally
offshore while staying within the EU's VAT regime.
The island's trust sector is long-established
and has a solid backing of law firms, trust managers
and advisory practises. The Isle of Man has instituted
favourable regime for ship and aircraft management.
In
December 2000 the Isle of Man government introduced
the Corporate Service Providers Act 2000, which
creates a licensing regime for corporate service
providers (CSPs) and empowers the Financial
Supervision Commission to process applications
for CSP status and to investigate CSP license
holders. CSPs must operate client accounts like
other professionals. Under the act it is an
offence for a CSP to operate without a licence.
In
2001 the Government passed the OnLine Gambling
Regulation Act, and the first three licences
for international gaming operations were issued
in September 2001. Although three more licenses
were issued in 2002, the Island's regime came
to be seen as too onerous by 2003, and a number
of license-holders left. By 2006 however it
was clear that changes to the regime had been
successful in re-kindling interest in the sector.
Late
in 2001 the Government completed a new legislative
regime for international pension schemes, and
this became available for use early in 2002.
For details, see the Insurance section via the
link below.
The
Island's 2003 budget included a major reform
package for the Island's fund industry. Key
measures included:
- A
zero tax rate for all third party fund administrators,
and for Managers of EIFs and PIFs - representing
an extension of the existing zero rate tax
regime on fund managers' profits to both fund
administrators and to managers of Experienced
and Professional Investor Funds;
-
VAT Exemption for Experienced and Professional
Investor Funds - representing an extension
of the VAT exemption on management fees.
-
Overseas Funds Exemption in the context of
Isle of Man regulation - such that an overseas
fund may be administered in the Isle of Man
without "dual regulation" where
it is incorporated in a jurisdiction having
an appropriate regulatory framework.
In
July, 2006, the Isle of Man Financial Supervision
Commission reported continued strong growth
in the jurisdiction's financial services sector
in the previous year, in spite of a "challenging"
climate.
In
its annual report for 2005/6, the FSC revealed
that deposits on the island grew by 19%, while
funds under management and administration grew
by 76%.
For
2005 and 2006 the number of new incorporations
of Isle of Man companies also continued to increase,
being up more than 40% between 2004 and 2005.
During
2005, the Commission commenced a major project
to consolidate and modernise the Isle of Man's
financial services legislation, and has put
forward important proposals to enhance its accountability
and transparency as part of this project. The
Commission also set out a mechanism under which
there would be involvement of the industry in
the setting of regulatory strategy.
This
project will also embrace innovative proposals
for the regulation of e-money, to be drawn up
in conjunction with the e-business sector which
continues to have strong growth potential.
The
Isle of Man's invitation to become a full signatory
to the IOSCO Multilateral Memorandum of Understanding
will also ensure that Manx-based businesses
enjoy access into major markets overseas, the
report stated.
Other
developments during 2005 included the enactment
of legislation for the licensing and supervision
of trust service providers. The Commission took
steps further to strengthen its own arrangements
for good corporate governance. During 2006 and
2007 the IOM continued to fine-tune its investment
and regulatory regimes with a plethora of legislative
measures.
This
section of the lowtax.net site describes the
most important types of offshore business activity
carried out from the Isle of Man.
-
ISLE OF MAN COMMERCIAL
TRADING COMPANIES
- ISLE OF MAN INVESTMENT
AND FUND MANAGEMENT
- ISLE OF MAN BANKING
- ISLE OF MAN TRUST
MANAGEMENT
- ISLE OF MAN INSURANCE
- ISLE OF MAN SHIP MANAGEMENT
& MARITIME OPERATIONS
