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 generous personal allowances with a £120,000 tax cap on personal income for the current tax year 2012-2013.
Read more about individual taxation on the Isle of Man Treasury website.
Corporate Taxation
For companies the lower rate of corporate income tax is 0% though a 10% rate of tax applies to income received by a company from any of the following sources:
- banking business
- land and property in the Isle of Man (including property development, residential and commercial rental or property letting and mining & quarrying)
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.
Up to the 5th April 2014 an employer will not be required to pay the secondary Class 1 National Insurance Contributions due for any newly recruited employees who qualify. Read more about the Employer National Insurance Holiday Scheme.
International Agreements
The Isle of Man is committed to international standards of tax transparency and helped develop the OECD template for tax information exchange agreement (TIEA). Since then, the Isle of Man has remained at the forefront of efforts to put in place tax co-operation agreements. This commitment to openness has earned the Isle of Man a place on the OECD ‘white list’ of countries. Responding to evolving world standards, the Island moved to the automatic exchange of tax information on savings, under the EU Savings Directive, in 2011.
The Isle of Man Government continues active negotiations aimed at concluding taxation agreements. View the full list of international agreements, both current and planned, on the Isle of Man Treasury website.