Isle of Man

Individual - Significant developments

Last reviewed - 08 June 2020

Tax treaties

As of 1 July 2019, the Isle of Man had entered into ten 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. The Isle of Man also has a DTA with the United Kingdom (UK) that predates the OECD model.

Economic substance test

In order to comply with commitments made to the European Union (EU), in December 2018, legislation was passed in the Isle of Man that brings into effect, from 1 January 2019, a new 'substance' requirement for companies resident in the Isle of Man for tax purposes. The legislation is targeted at companies that derive income from 'relevant sectors' as defined in the legislation, but which do not have any real economic activity and presence in the Isle of Man.