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Taxation

Personal Taxation

The Isle of Man operates a simple taxation regime with a lower rate of tax on individuals of 10%, a higher rate of 20% and an election for a tax cap of £125,000 on personal income for the current tax year 2016-2017.

Read more about individual taxation on the Isle of Man Treasury website.

Corporate Taxation

For companies the standard rate of corporate income tax is 0%. A 10% rate of tax applies to income received by a company from any of the following sources:

  • Banking business
  • Retail business, with profits above £500,000 (including supermarkets, car sales, petrol sales, convenience stores, online sales and mail order)

The rate of tax on income from land and property is 20% (including income derived from mining and quarrying, landfill, property development, commercial property letting and rental income).

Resident and non-resident companies are subject to Manx income tax on the same basis and at the same rates.

Additionally, there is no capital gains tax, wealth tax, stamp duty, death duty or inheritance tax in the Isle of Man.

Read more about corporate taxation on the Isle of Man Treasury website.

National Insurance

Full details about National Insurance on the Isle of Man can be found on the Treasury's website.

International Agreements

The Isle of Man is at the forefront of efforts to implement the international standard on exchange of information in tax matters. The Isle of Man is an active member of the OECD's "Global Forum on Transparency and Exchange of Information for Tax Purposes" and is currently a member of the Global Forum Steering Group. The effectiveness of the Isle of Man’s implementation of the international standard is reviewed by the Global Forum and to date more than 85 reviews have been completed, with the Isle of Man’s review being one of only 22 reviews to achieve the top 'Compliant' rating.

The Isle of Man’s commitment to international standards extends to automatic exchange of information that is emerging as a new international standard. In 2013 Tynwald approved the Isle of Man Government policies in relation to joining the OECD Convention on Mutual Administrative Assistance in Tax Matters (in force since 1 March 2014) and to work with others on the development of systems similar to the US FATCA, including the Common Reporting Standard for Automatic Exchange of Financial Account Information, or ‘CRS’.

The Isle of Man has concluded agreements with more than 40 jurisdictions and is party to the OECD Convention. These agreements provide for exchange of information with respect to taxes with approximately 100 jurisdictions. The full list of international agreements is available via the on the Isle of Man Income Tax Division website.

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