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Isle of Man: Domestic Corporate Taxion

Introduction

This page was last updated on 24 February 2020.

There is no general capital gains tax, turnover tax, capital transfer tax or stamp duty on the Isle of Man. Apart from VAT, the only significant tax is income tax which is levied on 'persons', i.e. both individuals and corporations (companies). The assessor of income tax, head of the Income Tax Division of the Manx Treasury, assesses and collects taxes. The Manx tax year runs from 6 April to 5 April, as in the UK.

In 2006, the jurisdiction moved towards a zero tax rate for all businesses, except 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). Prior to this change, companies in the insurance, fund management, space and satellite technology and shipping sectors enjoyed a zero rate of corporate tax (extended in 2005 to companies in the manufacturing, film, e-gaming, tourist accommodation, agriculture and fishing sectors).

The 0% tax regime is intended to stimulate inward investment by businesses establishing on the island, and provide a consistent treatment across all sectors of the economy as part of the Isle of Man's commitment to a diversified economy. However, the future of the '0/10' system was subject to some uncertainty, having attracted the attentions of the European Union's Code of Conduct on Business Taxation (see below).

From 4 January 2011 the standard value added tax (VAT) rate in the Isle of Man has been 20%, in line with the UK. Previously the rate was 17.5%.

 

 

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