Isle of Man

Corporate - Significant developments

Last reviewed - 09 January 2020

Tax treaties

As of 1 July 2019, the Isle of Man has entered into 11 comprehensive double tax agreements (DTAs), 13 limited scope DTAs, and 39 tax information exchange agreements (TIEAs) based on the Organisation for Economic Co-operation and Development (OECD) models.

Substance test

In order to comply with commitments made to the European Union (EU) Code of Conduct Group, legislation has been passed by the Isle of Man government in relation to the introduction of a 'substance test' for tax residency of corporate entities in the Isle of Man. The legislation is targeted at those companies in the Island that have income from certain business sectors identified by the European Union and which do not have any real economic activity and substantial economic presence in the Island.