Friday, 18 January 2013

IOM announces comprehensive taxation review


The Isle of Man government has unanimously voted to undertake a comprehensive review of all aspects of its taxation over the next three years.

However, the review is perhaps not as all-encompassing as it at first sounds, as the government was keen to underscore that the review will not lead to the introduction of capital gains tax or an inheritance or death tax, and that the island's zero-ten corporate tax regime will remain.  This reassurance was doubtless given to avoid scaring away new business as a result of uncertainty regarding long term business taxation, although it remains a possibility that some of the companies which currently pay 0% tax under the zero-ten regime could move in to the 10% bracket.

The aim of the review is both to boost revenues and make the tax system more simple to administer, and was felt necessary following the revision of the long-standing value-added tax-sharing agreement with the United Kingdom.

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