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Country Rankings - Isle of Man

  • Feb 28, 2013   Isle of Man: surrenders

    Every island is different; even the ones which have no corporate taxation have differences, and knowing about them can help to guide one in choosing a location for a business or an investment. It might be something as simple as geography or climate: if you are a Floridian, then you might choose The Bahamas as a place to start your offshore IP subsidiary simply because the flight connections are good. You probably wouldn't choose the Isle of Man, because the climate is horrid, and you might worry about the enthusiasm with which the authorities have surrendered to FATCA, even to the extent of agreeing a mini-FATCA with the UK government. Mind you, the IOM is not in a happy situation: unlike every other offshore location, it has a joint VAT regime with the UK, which the latter has unilaterally changed adversely to the tune of several hundred million pounds a year, throwing the IOM's finances into disorder and forcing it to bring major retailers within the 10% corporate tax net. I wonder how many Manx retailers there can be with annual profits over GBP500,000, but perhaps some UK firms are based there. That's maybe not too worrying for your average millionaire looking for a secure home for her money; but all this information flying about so readily? The IOM wants to be clean and respectable, but it seems to be giving up precious ground without much of a fight, and this is a difference that people will notice. Maybe the IOM sees its future as being poor but respectable? Cleanliness is next to godliness, they say.
    Source: http://www.lowtax.net/asp/story/front/Isle_Of_Man_Discusses_Automatic_Information_Exchange____59850.html


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