Setting up a Business in the Isle of Man

Taxation

Corporate Income Tax

From 6th April 2006 the rate of corporate income tax in the Isle of Man has been 0%. The 0% rate applies to profits of accounts that form the basis of a company's income tax assessment.

Companies with Manx resident shareholders may be subject to the Distributable Profits Charge.

Companies with banking business and with land and property income will pay tax at 10%.

Personal Income Tax

Residents of the Isle of Man pay income tax on their worldwide income at the prevailing rates shown below:

Rates and Allowances

	Income Tax Allowances		2007-08 (£)
	Single Person’s Allowance		8,850
	Married Couple’s Allowance		17,700
	Single Parent Addition		6,040
	Blind and disabled Person’s Allowance		2,720
	Non Residents Personal Allowance		2,040

	Income Tax Rates		2007-08
	Standard Rate		10%
	Higher Rate		18%
	Non-Resident Rate		18%

Individual Tax Cap

A cap of £100,000 on an individual's income tax liability has been introduced for the 2007/08 year of assessment commencing on the 6th April 2007. The cap is available, on application to the Assessor, for all taxpayers, both current residents and new residents.

National Insurance Tax

National Insurance Tax is a payroll tax used to fund the Welfare system. It consists of both employers and employees contributions. The employee suffers a deduction of some 11% of salary on amounts between £91 and £620 per week and 1% on salary in excess of £610 per week. The employer pays 12.8% of salary in excess of £91 per week with no upper limit.

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