Isle of Man

Overview

Last reviewed - 08 June 2020

The Isle of Man is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland. Part of the Norwegian Kingdom of the Hebrides until the 13th century, when it was ceded to Scotland, the Isle of Man came under the British crown in 1765. Though the Isle of Man is a British Crown Dependency, it is not part of the United Kingdom (UK) or the European Union (EU). However, the United Kingdom remains constitutionally responsible for its defence and international representation. The Isle of Man is divided into 16 local authorities, with Douglas as the capital. The official language of the Isle of Man is English.

The Isle of Man is in currency union with the United Kingdom, and the Manx pound is a local issue of coins and banknotes denominated in pounds sterling. An official separate currency code for the Manx pound does not exist; but where a distinct code is desired, IMP (Isle of Man pound) is generally used.

Offshore banking, insurance, fiduciary services, e-gaming, manufacturing, and tourism are key sectors of the Isle of Man's economy. The government offers incentives to high-technology companies and financial institutions to locate on the island. Trade is mostly with the United Kingdom. As a result of its relationship with the United Kingdom, the Isle of Man enjoys free access to EU markets.

PwC is a leading firm of chartered accountants in the Isle of Man, with an office in the capital, Douglas.

COVID-19 Updates

The Isle of Man Government announced a series of measures on 31 March 2020 intended to ease the completion and submission of tax returns during the coronavirus outbreak.

Individuals

The deadline for the submission of personal income tax returns before the imposition of any penalty has been extended from 6 October 2020 to 6 November 2020.

Companies

For any company tax returns due to be submitted between 1 April 2020 and 5 June 2020, the filing date for these returns is extended to 5 June 2020.

Employers

The deadline for employers’ tax returns for the year ended 5 April 2020 is extended from 5 May 2020 to 5 June 2020.

The Isle of Man Government have also announced a 'National Insurance Holiday' for employers in relevant sectors reducing the rate of Secondary Class 1 National Insurance contributions to zero from March 2020 (until further notice).

Businesses included in the 'relevant sectors' are those with income wholly or mainly from: tourist accommodation, catering and entertainment, leisure, travel and tour operators, and companies involved with logistics that is the movement of goods to and from the Island.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

Corporate: 0;

Banks: 10;

Income from real estate: 20

Corporate income tax (CIT) due dates
CIT return due date

One year and one day following the end of an accounting period.

CIT final payment due date

One year and one day following the end of an accounting period.

CIT estimated payment due dates

NA

Personal income tax (PIT) rates
Headline PIT rate (%)

20

Personal income tax (PIT) due dates
PIT return due date

6 October

PIT final payment due date

6 January

PIT estimated payment due dates

Monthly

Value-added tax (VAT) rates
Standard VAT rate (%)

20

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

0

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

NA

Individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.