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Isle of Man: Offshore Legal and Tax Regimes

Tax Treatment of Offshore Operations

This page was last updated on 24 February 2020.

See Domestic Corporate Taxation for the general principles of Isle of Man corporate taxation, which also apply to offshore entities except as indicated below.

As from 2006, taxation (at 10%) applies only to 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).

Non-resident partners in a Manx partnership, limited partnership or Limited Liability Company are liable for tax only on Manx-derived income (with the usual concessions regarding bank interest), and then as individuals (see Personal Taxation).

As from 1st April 2006, all IOM captive insurance companies became liable for tax; however the tax rate is 0%.

Trusts with non-resident beneficiaries are exempt from Isle of Man income tax on income arising outside the island and (by concession) on IOM bank interest.

 

 

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