Isle of Man Taxation

The Isle of Man indirect tax system closely follows that of the UK, levying VAT and customs and excise duties at the same rates and on the same goods and services as the UK.

A Customs and Excise Agreement exists between the UK and the Isle of Man creating a common customs and fiscal area. Under the Agreement the Island has access to the European Single Market.

A resident person, whether an individual or company, is liable to income tax on world-wide income. Persons who are not resident are liable only on Manx source income. There are no capital, inheritance or withholding taxes. The top rate of income tax in the Isle of Man is currently 18%. The Island has no international tax treaties other than the one entered into with the UK.

Tax Free Companies

A non-resident person can acquire or establish an Isle of Man company and subject to meeting certain requirements ensure that the company is free from tax in the Isle of Man.

Tax Free Trusts

A non-resident person can also settle funds on an Isle of Man trust, which, as long as no Manx residents can benefit, will not be subject to tax in the Isle of Man.

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