Isle of Man

Isle of Man - Common law
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Isle of Man taxes

If you want to incorporate in Isle of Man, this article will educate you on the tax laws for a LTD which is the most common company structure in Isle of Man.

Isle of Man taxes resident entities on their worldwide income. However, the standard rate for income accrued both onshore and offshore, from our research, and this is not personal tax advice, is 0%. Unless income is received by licensed banks (10%), retail activites with revenues of more than IMP 500,000 (10%) and land and property within the country (20%). Isle of Man ranks 1st overall in terms of corporate tax rate worldwide.

The VAT rate in Isle of Man is 20.00%, that ranks the jurisdiction as 134th overall with regards to value added tax rate worldwide. Regarding other taxation, an employer will contribute 12% to the equivalent of a social security fund and an employee will contribute 11%.

Thin cap mandates are not in play. This refers to any type of requirements on given company with respect todebt-to-asset ratios. Dividends are subject to Corporate Income Tax, and usually taxable at a 0% rate. Dividends are distributions of company profits, established by the board, to a particular class of shareholders. Dividends can be either shares of stock, cash payments, or other property. Capital Gains are not subject to taxation. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividends, interests and royalties are usually subject to a withholding tax of 0%. Which means that the tax authorities usually expects LTD's to pay tax on 0% of payments abroad on dividends, interests and royalties. Payments on interests made to an individual out derived from Manx land and property may be subject to a 20% withholding tax. Payments on royalties that represents payments of Manx income to an individual may be subject to a 20% withholding tax.
There is no known tax on wealth in Isle of Man. There are no known inheritance and transfer taxes. There are real estate property taxes in Isle of Man.

The above is not tax or legal advice for your company's situation. can refer you to an expert in Isle of Man who will advise you. Ready to get started? Click the free consultation button above.

It takes approximately - hours to file and prepare documents for a Isle of Man Common law.
The corporate tax is approximately 0% which is 1 in the world.

Owners of a company in Isle of Man are allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Isle of Man is 20% which ranks 134 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
0Tax treaties
0%Offshore Tax
0%Corp rate
1Loss carryback years
-Corporate time
20%VAT rate
0%Capital gains
2017AEOI planned

Read this to learn about incorporating a company in
Isle of Man

We can help you form a company in Isle of Man. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Isle of Man, which is required by law.

Isle of Man Tax Treaties

CountryTypeDate signed

Country Info

National Flag of
Isle of Man (eng)
Ellan Vannin or Mannin (glv)
Area Code
Northern Europe
Native Languages