Isle of Man Double Taxation Agreement and Tax Information Exchange Agreement to come into force with Poland

The Isle of Man's Double Taxation Agreement (DTA) with Poland will come into effect from 27th November 2011.  A Tax Information Exchange Agreement (TIEA) has already been implemented in October 2011.  The Agreements which were signed in March of 2011 will ensure that enterprises will not face double taxation for the operation of ships or aircraft in international traffic as well as offering the avoidance of double taxation with respect to certain income of individuals.

The Isle of Man has now entered into 5 DTAs with Estonia, Belgium, Malta, Bahrain and Poland and expands on the Island's network of international tax co-operation agreements. Key TIEAs have also been signed with European nations including the UK, France, Germany, the Netherlands, Denmark, Sweden, Belgium, Finland, Ireland, Estonia, Norway, Iceland, Slovenia and the Czech Republic.  Other TIEAs have been entered into with the US, China, India, Japan, Australia, New Zealand, Mexico, Indonesia, Greenland and the Faroe Islands.

A DTA is the standard agreement between countries to remove double taxation obstacles to the development of economic relations, and in doing so facilitate the exchange of goods and services and movements of capital, technology and people. A TIEA also acts to prevent tax evasion, and implements the OECD agreed international standard on tax transparency and exchange of information. This approach has been endorsed in the OECD report "Tax Transparency 2011: Report on Progress" which was delivered to the G20 Cannes Summit meeting on 4 November 2011. The report stated that the Isle of Man was one of only eight reviewed jurisdictions found to have all elements of effective information exchange in place (the others being Australia, France, India, Ireland, Italy, Japan and Norway).

10th November 2011