In the Isle of Man there
is no general capital gains tax, turnover
tax or capital transfer tax, and there are
no stamp duties. Apart from VAT, the only
significant tax is income tax which is levied
at a maximum rate of 18% on individuals, and
until 2006 on corporations (companies). In
its budget for 2002/03 the government reduced
lower rates of income tax to 10%.
The Assessor of Income Tax is the head of
the Income Tax Division of the Manx Treasury
and carries out the functions of tax assessment
and collection. The Manx tax year runs from
April 6th to April 5th (as in the UK). The
island forms part of the EU VAT area, and
applies the same rate as the UK.
In
February, 2005, Treasury Minister Allan Bell
delivered his 2005 Budget, announcing a zero
rate of income tax for six sectors of the
Island's economy - manufacturing, film, e-gaming,
tourist accommodation, agriculture and fishing.
Mr
Bell confirmed that the Island - which already
had the zero rate for insurance, fund management,
space and satellite technology and shipping
- would introduce it as a standard for business
in April 2006, with a 10% rate of tax for
'financial institutions'. This includes companies
holding banking licences and those receiving
income from land and property in the Isle
of Man (which includes rental income, extraction
of minerals and property development).
The
Isle of Man's 2006 budget in February, 2006,
included a package of measures to further
stimulate the inflow of investment and business
to the Island, including the introduction
of zero corporate tax as of 5th April 2006.
In
July, 2004, the Income Tax (Amendment) Bill
2004 was signed, marking an important step
towards the programme of changes under the
island’s Taxation Strategy, whilst also helping
the jurisdiction to meet its international
commitments, said Treasury Minister Alan Bell.
The Act included measures to:
- Extend
the current year basis of assessment to
all income received by individuals and other
non-corporate taxpayers, including income
from investments, self-employment and other
sources. (Income from employment is already
on a current year basis).
- Introduce
a payment on account system for those people
who do not pay their annual income tax liability
through the Income Tax Instalment Payment
or Sub Contractor’s Deduction Schemes.
- Allow
more time to make a tax return and, after
a period of education, introduce a late
filing penalty system.
- Provide
the Assessor with additional powers to obtain
information, including documents and information
required to enable the Island to comply
with its international commitments.
- Prevent
the avoidance of Manx tax through the use
of company loans to take advantage of the
differential between corporate and personal
income tax rates.
"As
I said when I introduced this Bill last year,
the people of the Isle of Man are entitled to
an income tax system that works as efficiently
as possible and collects all the money that
is owed to public funds,” Mr Bell continued,
noting:
“Manx
income tax rates are low compared with other
countries and it is not unreasonable to expect
payment of what is due. It is also important
for the reputation and stability of the Island
that we have the ability to honour our international
commitments.”
- ISLE
OF MAN SCOPE OF CORPORATION TAX
- ISLE
OF MAN CORPORATE TAX RATES
- ISLE
OF MAN CALCULATION OF TAXABLE BASE
- ISLE
OF MAN TAXATION OF TRUSTS
- ISLE
OF MAN FILING REQUIREMENTS AND PAYMENT OF
TAX
- ISLE
OF MAN WITHHOLDING TAX
- ISLE
OF MAN RESIDENCE AND LIABILITY FOR TAXATION
- ISLE OF MAN
INCOME TAX
- ISLE OF MAN
CUSTOMS DUTIES
- ISLE OF
MAN SOCIAL SECURITY
- ISLE
OF MAN FORMS OF OFFSHORE OPERATION
- ISLE OF MAN TAX
TREATMENT OF OFFSHORE OPERATIONS
- ISLE OF MAN
TAXATION OF FOREIGN EMPLOYEES OF OFFSHORE
OPERATIONS
- ISLE OF MAN
EXCHANGE CONTROL
- ISLE OF MAN
OFFSHORE ACTIVITIES
- ISLE OF
MAN EMPLOYMENT AND RESIDENCE
- ISLE
OF MAN DOUBLE TAX TREATIES
- ISLE OF MAN
INTERNATIONAL AGREEMENTS
