Isle of Man

Individual - Foreign tax relief and tax treaties

Last reviewed - 09 January 2020

Foreign tax relief

The Isle of Man grants tax credit relief for foreign tax suffered by the individual equal to the lower of the foreign tax suffered and the individual's marginal Isle of Man tax rate.

There is no tax credit relief for the notional 10% tax credit on dividend income received from the United Kingdom.

Tax treaties

As of 1 July 2019, the Isle of Man has entered into 11 comprehensive DTAs, 13 limited-scope DTAs, and 39 TIEAs based on the OECD models.

Information has been exchanged with the United States (US) with effect from 30 June 2015 under an agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA).

The United Kingdom and Isle of Man governments have been exchanging additional information with effect from 30 June 2016 under an agreement extending the automatic disclosure of tax information. The agreement is modelled on the requirements of FATCA.

The Isle of Man has also committed to adopt the Common Reporting Standard (CRS), the new global standard for tax information agreements.