Isle of Man

Land Development Tax Holiday

Where certain conditions are met, a company can apply for exemption from income tax for up to five years on ‘relevant’ profits. These include:

• Profits on new commercial developments or improvements to existing commercial developments.
• Rental income received on a new commercial development or improvement to an existing commercial development.

However, both of the above must provide ‘additional productive employment’ in the Island.

Residential property is excluded as is any business that is beneficially owned by a tax-capped individual. The tax holiday applies to income that commenced after 16 February 2016. It begins on the first date income is earned from the development and will continue for a period of up to five years.

Foreign tax credit

Foreign tax paid in respect of profits that are subject to tax at a rate above 0% in the Isle of Man will be offset against the liability arising in accordance with any relevant tax treaty in place.