Tax & Accounting News

Isle of Man cuts corporation tax and income tax

23/02/2006

The Isle of Man has announced tax cuts which are proposed to take effect from 6 April 2006.

Corporation tax is to be reduced to a zero rate for most companies (although tax will effectively be apportioned to shareholders resident in the Isle of Man). The Isle of Man could therefore be an attractive location for the establishment of a new business or the relocation of an existing one.

Income tax for individuals resident in the Isle of Man is to be limited to a maximum liability of £100,000, irrespective of the level of earnings, in an attempt to attract entrepreneurs and other wealthy individuals. Once again, this could be attractive to individuals with high earnings looking for a low-tax location near the UK.

 

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