The Isle of Man
Overview
The Isle of Man is an established international finance centre with a secure base built upon political stability, low taxation and a firmly established fiscal and regulatory environment. The sophistication of the Island in terms of providing international services is fully supported by a modern infrastructure and the Isle of Man is one of the few international finance centres whose objective of economic growth is matched by the space and labour resources needed to sustain such growth.
International recognition
The development of the Island’s financial centre has attracted considerable attention. This has included reviews of the Island and its tax and regulatory practices by bodies such as the Financial Action Task Force (FATF), the Organisation for Economic Cooperation and Development (OECD) and the Financial Stability Forum (an IMF body). Recognition of the comprehensive steps taken by the Island to combat money laundering was given by the FATF in its review of the world-wide effectiveness of anti-money laundering measures. The Isle of Man does not feature on the OECD’s blacklist of uncooperative jurisdictions. The Financial Stability Forum has reported that the Isle of Man has good supervisory practices and levels of cooperation and placed it in the first division of offshore centres. |
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The Island’s positive image has been further reinforced by Moody’s and Standard and Poor’s “AAA” accreditation.
Taxation
It is almost always possible to structure corporate, trust, partnership and other vehicles established in the Isle of Man so as to be exempt from or zero rated for Manx income tax. The Island does not levy any capital taxes, inheritance tax or stamp duty. Value added tax applies in the Isle of Man generally at the same rate as in the United Kingdom, with some important exceptions (for example, fees paid to most fund managers and fund administrators will not attract VAT).
In 2002 the Isle of Man revealed a radical new tax strategy of standard zero rate income tax for all Isle of Man companies and other business organisations, irrespective of the residence of their owners; this strategy was implemented in April 2006.
For more detailed information about the Isle of Man, click here. |
