Isle of Man Taxes

Corporate Income Tax:

• The standard corporate income tax rate is 0%.
• Income from banking businesses and large retailers is taxed at 15% for the 2024-25 tax year.
• Income from gas and oil extraction is taxed at 20%.

Individual Income Tax:

• Individual income tax rates are 10% and 22%.
• The 22% rate applies to higher earners.
• There is a tax cap arrangement.

Value Added Tax (VAT):

• The Isle of Man has a VAT agreement with the United Kingdom.
• VAT rates and rules are aligned with the UK.
• The VAT registration threshold from 1 April 2024 is £90,000.

Withholding Tax:

• There is no general withholding tax on dividends, interest, or royalties paid to non-residents.
• There can be withholding tax, regarding payments to non resident entertainers.

Property Taxes:

• There are local authority rates levied on property.

Capital Gains Tax:

• There is no capital gains tax in the Isle of Man.

Inheritance Tax:

• There is no inheritance tax in the Isle of Man.

Other Taxes:

• There are no wealth taxes or gift taxes.
• There are no stamp duties.
• There are no insurance premium taxes.

Tax Residency:

• Tax residency is determined by factors such as the number of days spent in the Isle of Man and the individual's ties to the island.
• Specific rules apply to determine residency status.

Double Taxation Agreements (DTAs):

• The Isle of Man has DTAs with numerous countries.
• These agreements aim to prevent double taxation of income.

Tax Compliance:

• Taxpayers are required to file tax returns and comply with other tax regulations.
• The Isle of Man Income Tax Division is the tax authority.

National Insurance:

• National insurance contributions are required, and the amounts vary.
• The rates, and thresholds, are adjusted annually.

Automatic Exchange of Information:

• The Isle of Man participates in the automatic exchange of financial account information.