| Isle of Man Business Services Overview |
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OCRA Worldwide’s original and largest business centre offers
a comprehensive range of business solutions to corporations and
entrepreneurs wishing to establish a physical presence on the Isle
of Man, one of Europe’s premier offshore financial centres,
offering Zero corporate tax and capped rates of personal income
tax.
The Island's Government has positively encouraged economic growth
in recent years by creating a sympathetic tax regime and suitable
legislative framework for expansion and by offering financial incentives
where necessary, particularly for the manufacturing industry and
tourism. In addition, the establishment of a Freeport on the Island
has assisted the manufacturing sector to become one of the major
income earners.
Whilst other offshore centres have become overcrowded and expensive,
the Isle of Man is in the fortunate position of being able to provide
affordable high-quality commercial and residential accommodation
in a spacious and scenic environment. It has the capacity for sustaining
growth for many years while continuing to retain these virtues.
Isle of Man takes zero
Corporate Tax Plunge
On 21st February 2006 the Hon. Allan Bell, Minister
for the Treasury, announced that with effect from 6th April 2006
the rate of corporate income tax on trading and investment income
will be 0% and that the rate of corporate income tax on banking
business income and land & property income will be 10%. From
the same date the rate of withholding tax on taxable distributions
to non-residents will be the same as the rate of tax paid by the
company. In addition corporate taxpayers, except those that currently
pay a fee and those that may be exempted, will pay an annual corporate
charge of £250 from the tax year commencing 6th April, 2006.
In the event that Manx companies are owned by Manx
trusts, the residence of a trust for tax purposes (notwithstanding
that it may have Isle of Man-based trustees) generally will be determined
by the residence for tax purposes of the beneficiaries of the trust.
Existing exempt and non-resident companies and
international LLCs will continue to pay exempt duty for the fiscal
year commencing 6th April, 2006 but such duty will cease to be payable
by them for any subsequent year. Applications for exempt companies
and international LLCs will cease to be accepted from 6th April,
2006.
The result of the foregoing is that clients who
are not resident in the Isle of Man for tax purposes can utilise
a tax-resident Isle of Man company for trading purposes (most effectively
within Europe as an Isle of Man company can be registered for V.A.T.)
with no Isle of Man tax on the profits thereof or on distributions
therefrom.
The abolition of corporate tax also adds substantially to the attractions
of asset-holding companies on the island, which already benefit
from the absence of capital gains tax, stamp duty or inheritance
tax.
Additionally the Minister announced in his Budget Speech a capping
of individual income tax liability at £100,000 p.a. on worldwide
income with a view to encouraging entrepreneurs to relocate to the
Isle of Man, thereby encouraging growth of the Manx economy. The
combination of the reduction in corporate income tax as noted above
to 0% (10% for land and property income) with the capping of personal
income tax liability should make the Isle of Man a fiscally attractive
location for high net worth individuals.
The OCRA Worldwide team based in Ramsey in the North of the Island
has particular expertise in the utilisation of Manx business entities
for international trade and investment and for real property and
intellectual property holding.
For further information about Setting up a Business in
the Isle of Man please contact
a director of our Isle
of Man office. |
