Isle of Man Taxation

Acknowledged by the OECD for its tax transparency, the Isle of Man is one of the few achievers of the ‘top compliance’ rating in August 2017. Below is a short summary of the key points on Isle of Man taxation.

For companies in the Media sector the standard rate of corporate income tax is 0%. There are a number of tax differences from other jurisdictions – no capital gains tax, wealth tax, stamp duty, death duty or inheritance tax. The lack of capital gains tax is very favorable for high profit ventures and in the case of an exit.

The Island operates a simple taxation regime with a lower rate of tax on individuals of 10%, a higher rate of 20% and a 5 year election for a tax cap of £150,000 on personal income for the current tax year, 2017-2018.

For ‘Key Employees’ there is a 3-year tax concession. As a result no tax is payable on any income received other than income from Isle of Man employment.

The Isle of Man has concluded agreements with more than 40 jurisdictions and is party to the OECD Multilateral Convention. These agreements provide for exchange of information with respect to taxes with approximately 100 jurisdictions.

The Isle of Media team don’t provide tax advice, however what we can do is make introductions you to companies that will be able to give the best advice you need to locate business in the Isle of Man. It is a complex area, and we would always suggest you take the appropriate professional advice when it comes to taxation. Please contact us for more information or any further questions you may have in regard to taxation on the Isle of Man.