The jurisdiction of choice
Low taxation, excellent regulatory regime and high quality of life. The Isle of Man - jurisdiction of choice.
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About the Isle of Man
The Isle of Man is the ideal location for establishing or relocating a business due to its position as an innovative financial centre offering low taxation in an excellent regulatory regime.
Location
The Isle of Man is situated at the heart of the British Isles in the middle of the Irish Sea between Ireland (31 miles) and the United Kingdom (31 miles). The island is 33 miles long and 13 miles wide with a population of approximately 80,000 residents.
The Isle of Man is a beautiful island with unspoilt beaches, mountainous countryside, sweeping coastline and bustling townscapes. Such scenery has provided many a backdrop for the film industry in recent years, the island having doubled as Cornwall, Yorkshire, Norfolk, Hampshire, Brighton and even the Caribbean.
Background
The island is a self-governing dependent territory of the British Crown which is not part of the United Kingdom, but for which the Crown has the responsibility for ensuring the good government of the island and for its external affairs, but the Island's democratically elected government exercises full control of its internal affairs and territorial waters. By long standing convention, the U.K. Government does not legislate for the Island except with the specific consent of the Island's Government.
The High Court of Tynwald is the Parliament of the Isle of Man, is over 1,000 years old and is considered to be the oldest Parliament in the world with unbroken existence.
Taxation - Personal Income Tax
The island has its own income tax and customs and excise framework and is independent from the United Kingdom in respect of direct taxation. Income tax is low, the standard rate being 10% and the higher rate being 20% and recently the Isle of Man Government introduced a personal taxation cap which means that an individual's personal tax liability is limited to £115,000 irrespective of income generated. There are also generous personal allowances (please see the 2010/2011 Isle of Man budget news item for further details).
There are also no stamp duties, capital gains tax, wealth tax, capital transfer tax, inheritance tax or death duty imposed in the Isle of Man.
Corporation Tax
The standard rate of corporate income tax in the Isle of Man is 0% and 10% 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).
The Economy
The Isle of Man economy has seen 25 years of continued economic growth averaging 6% over the last decade with GDP 113% of the UK average.
The Island's Government has positively encouraged economic growth in recent years by creating a favourable tax regime and suitable legislative framework for expansion.
The Isle of Man is an established and respected international finance centre, built on political and fiscal stability, low taxation and a fully supported modern infrastructure.
The endorsement of the Isle of Man as a leading finance centre has again been evidenced by Standard and Poor's and Moody's sovereign rating of "AAA", the highest rating awarded and the recent 'white listing' by the OECD.
The key sector which has contributed to this growth has been in financial services, and to encourage diversification sectors have been promoted including film and television, shipping and aircraft management, e-commerce and internet businesses coexisting with traditional industries such as tourism, fishing and agriculture.
VAT
The island benefits from a special relationship with the European Union which allows the streamlined movement of goods between the Island and the Union. The Isle of Man is the only offshore financial centre where zero tax rate companies may operate within the European Union VAT system and trade freely within the European Union.
The VAT rate currently stands at 17.5%, having risen from 15% on 1st January 2010 (future rises in the VAT rate may be introduced following the forthcoming UK general election).
Registration for VAT is required for companies making taxable supplies which at the end of any month, the total value of taxable supplies made during the preceding 12 months (on a rolling 12-month basis) exceeds £70,000. Also, should a company expect that the value of taxable supplies within a 30 day period will exceed £70,000, then registration will be necessary.
Quality of Life
The Isle of Man has remained in the fortunate position of being able to offer affordable high quality commercial and residential accommodation in an open and spacious environment whilst many other offshore jurisdictions have become expensive and overcrowded.
The island has an exceptional health system, high education standards, and excellent transportation links and communication systems and whilst being a modern progressive environment maintains a traditional independence and proud heritage.
Useful Links
| Isle of Man | http://www.gov.im/ |
| Freedom | http://www.gov.im/cso/flourish/ |
| Facts 2009 | http://www.gov.im/lib/docs/cso/2009keyfacts.pdf |
| Income Tax | http://www.gov.im/treasury/incometax/sections/business/overview.xml |
| VAT | http://www.gov.im/treasury/customs/who/ |
| Isle of Man News | http://www.iomtoday.co.im |