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MARKET ENTRY INFORMATION

DOING BUSINESS IN THE ISLE OF MAN

Isle of Man Business Services Overview About the Isle of Man Setting up a Business in the Isle of Man Taxation

TAXATION

Corporate Income Tax

Companies that are incorporated in the Isle of Man are foreign companies where their critical management and control is exercised in the Isle of Man are subject to taxation at prevailing rates on their worldwide income. Since 6th April 2006 the rate of corporate income tax on trading and investment companies has been zero % and 10% for banking business income and for land and property business income.

In addition, from the same date of withholding tax on taxable distributions to non-residents and shareholders will be at the same rate.

The abolition of corporate income tax for normal trading and investment companies substantially enhances the Isle of Man's competitiveness in the Global Arena.

Personal Income Tax

Residents of the Isle of Man pay income tax on their worldwide income at the prevailing rates shown below:

Rates and Allowances
Income Tax Allowances 2013-14(£)
Single Person's Allowance 9,300
Married Couple's Allowance 18,600
Single Parent Addition 6,400
Blind and disabled Person's Allowance 2,900
Taxable Bands 2013-14(£)
Standard Rate 10% 0 - 10,500
Higher Rate 20% 21,000

For the tax year 2013/14 commencing on the 6th April 2013 the Tax Cap on individual income tax liability remains at £12,000 p.a. on worldwide income.

Interest payable on Mortgages and Personal Loans are Tax deductible.

Capital Gains Tax

The Isle of Man Government does not impose tax on Capital gains.

Gifts Tax

The Isle of Man Government does not impose tax on the Benefactor or Beneficiary of a gift.

Inheritance Tax

The Isle of Man Government does not impose inheritance tax.

National Insurance Tax

National Insurance Tax is a payroll tax used to fund the Welfare system. It consists of both employers and employees contributions. The employee suffers a deduction of some 11% of salary on amounts between £107 and £770 per week. The employer pays 12.8% of salary in excess of £115 per week with no upper limit.

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