Isle of Man Finance

The key principles of fiscal sovereignty, economic stability and adherence to international standards remain fundamental to the Treasury's consideration of any taxation initiative.

The Taxation Strategy incorporated a number of measures, the most significant being the move to a standard zero rate of corporate tax combined with a higher rate of 10% applied to certain defined regulated businesses, principally banking activity.

The budget on 15 February 2005 announced the early introduction from 6 April 2005 of the zero rate of corporate tax in respect of e-gaming, tourist accommodation, film and television production, agricultural activities, fishing and manufacturing. These are in addition to the activities already subject to the zero rate: insurance, shipping, fund management and aircraft operation.

The budget on 21 February 2006 announced the introduction from 1 April 2006 of the Zero tax rate to apply to all resident and non-resident non-regulated trading businesses in line with the approved Modified Taxation Strategy. Income tax personal allowances increased by 2% to £8,670 for single persons and £17,340 for married couples; Personal income tax standard rate stayed at 10%, with the higher rate remaining at 18%; Tax cap on total income tax payable per person of £100,000 or £200,000 per married couple was introduced. To view the Treasury Minister's 2006 Budget speech, click on the link below.

For further information concerning the tax strategy please click through to the following document: Tax Strategy Consultation Document