Tax Haven Isle of Man, OECD, Low Tax Area

 

Isle of Man

Background:

The Isle of Man has in the past been mistaken for a tax haven, however for a number of years now the Isle of Man Government has worked hard with the local finance industry to meet the highest international standards and is committed to promoting and enhancing the Island’s reputation as a well respected international business centre.

The Isle of Man Government has welcomed the Island’s inclusion on the OECD 'list’ of countries complying with the global standard for tax co-operation and exchange of information. The list, produced following the G20 summit in London, places the Isle of Man in the top tier of jurisdictions – along with nations such as the UK, USA, Germany, France, Sweden and Ireland and recognises that we have ‘substantially implemented the internationally agreed tax standard.’ The list confirms the Island's position amongst the most responsible and co-operative countries of the world.

The Isle of Man has always supported an objective, global approach to this issue and inclusion on the list represents a major endorsement of the Island's long-term strategy of positive engagement with the OECD. This can only reinforce the Island’s reputation and confidence in our future as an international business centre of quality is in place.

Finance and Taxation:

In March 2000 (and subsequently) the Isle of Man was awarded a AAA credit rating by Standard & Poor and Aaa rating by Moody. This typifies the sound base and quality business existing on the Island and bodes well for the future.

The Isle of Man is a low tax area and is free of capital taxes (i.e. no capital gains tax or inheritance tax is levied).

Personal tax rates are capped at 18% and a tax cap of £100,000 (per person) is in place.

Corporate tax (other than for banks and for land and property) has been NIL since 6th April 2006 thus creating an extremely attractive low tax area for existing and new business.