The Isle of Man
The Isle of Man is an island located in the Irish Sea at the geographical centre of Britain and Ireland. Although it is not part of the United Kingdom, it is a Crown dependency.
For businesses and residents, the Isle of Man offers many advantages, all enhanced by our reputation for having a ‘can-do’ approach to business and life.
Businesses benefit from a committed workforce, professional expertise, our supportive and responsive government, world class telecoms and power infrastructure and sound financial regulation.
The Government and private sector enjoy a close working relationship. Ministers are accessible, which means ideas are heard…and actioned. This means that we are well placed to react to the challenges of the current global economy.
For more than a decade we have enjoyed virtually full employment, typically less than 1.5%, and in 2009 still under 2.5%. Our workforce is committed, educated and experienced. Both companies and residents enjoy a simple tax regime, which nevertheless supports excellent public services.
Corporate Income Tax: The standard rate of corporate income tax is 0%, except for two defined activities which are taxed at 10%: licensed banking business; and corporate income from Manx land and property.
Indirect Taxation: The majority of government income comes from VAT and other indirect taxes. Under a bilateral agreement, these are levied at the same rate as in the UK.
Personal Income Tax: Income tax rates and allowances are competitive. Individual income tax liability is capped at £100,000 per annum. There is no capital gains tax, inheritance tax or wealth tax.
Tax to GDP Ratio: The annual tax to GDP ratio, calculated using standard OECD (Organisation for Economic Co-operation and Development) methodology, is 34%: only 2% below the OECD average.