Isle of Man
Individuals who are resident in the Isle of Man are liable to tax on their worldwide income from all sources.
A non-resident is liable to tax on any source of income arising or accruing in the Island, with the exception, under extra statutory concession, of bank and building society interest and dividends.
Personal income tax rates
A standard rate of 10% is charged on taxable income of resident individuals on up to 6,500 Isle of Man pounds (IMP) for single persons and IMP 13,000 for jointly assessed couples.
A higher rate of 20% is charged on taxable income exceeding the standard rate limits.
The personal allowance for 2023/24 is IMP 14,500 IMP for single persons and IMP 29,000 for jointly assessed couples, which is reduced by IMP 1 for every IMP 2 that income is in excess of IMP 100,000 for single persons or IMP 200,000 for jointly assessed couples (see the Deductions section).
Subject to an irrevocable election, there is a tax cap of IMP 200,000 (or IMP 400,000 for a married couple) on an individual Isle of Man resident’s income tax liability for the five years commencing 6 April 2020.
Non-residents pay tax at a rate of 20% on total taxable income.
Withholding taxes (WHTs)
The Assessor of Taxes in the Isle of Man has the power to require the deduction of WHT, at a rate determined by the Assessor (typically 20%), on payments of taxable income made to a non-resident individual (e.g. payments made to a non-resident sub-contractor).
Local income taxes
There are no other taxes on income.