Isle of Man

Key Corporate Information

Compare against other jurisdictions

1 Corporate
Tax Rate
0%

Not applicable

2 Substance
Requirements

Isle of Man & Channel Islands authorities have produced this guidance note:

https://www.gov.im/media/1367560/updated-economic-substance-guidance.pdf

3 Withholding
Tax

No Withholding Tax

4 Participation
Holding Exemption

Not applicable due to zero rated corporate tax and no capital or withholding taxes

5 Number of Double
Taxation Treaties

The Isle of Man has entered into 11 comprehensive DTAs, 13 limited-scope DTAs, and 39 TIEAs based on the OECD models

https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/international-agreements/double-taxation-agreements/

6 Time to
Establish Company

Subject to satisfactory receipt of all due diligence items:

  • 48 hours or less for a Companies Registry fee of £100
  • 2 hours or less for a Companies Registry fee of £250
  • “While you wait” service for a Companies Registry fee of £500
7 Audit
Requirement

No audit requirements for companies incorporated under the 2006 Companies Act

Companies incorporated under the 1931-2004 Companies Acts can elect to dispense with audit requirements if they qualify as an “audit exempt company”

A company is an “audit exempt company” in any financial year if:

1. at least two of the following conditions are met:

  • its turnover in that year does not exceed £5.6 million;
  • its balance sheet total does not exceed £2.8 million at any time during that year;
  • it employs no more than 50 persons at any time during that year; or

2. throughout that year, all its members are directors, and it exists wholly for the purpose of holding shares, securities, other investments, or land

8 Filing
Requirements

Statutory Annual Return is due every year on the anniversary of the company’s incorporation

Annual Tax Return due 12 months and 1 day after the end of the company’s accounting period

There is no requirement to publicly file annual accounts/financial statements

9 Stamp Duty on
Transfer of Shares

No Stamp Duty

10 Shareholder Information
Publicly Available

Beneficial ownership register is not publicly available

Registered shareholder information is publicly available for a fee

NB: Dixcart often act as registered or “nominee” shareholder

11 Other
Beneficial Factors

Wide selection of flexible incorporated entities available including:

  • Companies Act 2006 Company
  • Companies Act 1931 Company
  • Protected Cell Company
  • Limited Partnership with Separate Legal Personality (similar to a UK LLP)
  • Foundation
  • Limited Liability Company

The Isle of Man falls under the UK’s VAT regime and as such, those entities that want to VAT register can benefit from faster response times and a more approachable Customs office

Strong financial and banking infrastructure

Political and economic stability