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Isle of Man: Domestic Corporate Taxion

Filing Requirements and Payment of Tax

With effect from April 6, 2007, the Income Tax (Corporate Taxpayers) Act 2006 changed the way in which companies in the Isle of Man are taxed (including the Distributable Profits Charge and Loans to Participators); from a year of assessment basis to an accounting period basis “pay and file” system.

As companies will be assessed on an accounting period basis, returns will be issued at the end of a company’s accounting period. The due date for the filing of company tax returns is 12 months and one day after the end of the accounting period. This is also the date by which payment of any income tax liability or charge must be made. Returns can be filed and payments can be made before the due date.

If the return is not filed by the due date, a late return penalty will be charged. A second penalty will be charged if the return is still outstanding six months after the due date. Interest may be charged on any income tax liability or charge that is not paid by the due date, and will be calculated from the due date; no matter when any form of payment notice was issued.

Returns for accounting periods can now be completed and submitted online, together with payment of any liability due, using Online Tax Services.



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