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Economy and Banking Sector of the Isle of Man

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in the Isle of Man: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Isle of Man are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Isle of Man.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of the Isle of Man: 11 Signed Agreements

Isle of Man signed DTAs which already came info force with the following jurisdictions:

BH Bahrain
EE Estonia
GG Guernsey
JE Jersey
MT Malta
QA Qatar
SC Seychelles
SG Singapore
GB United Kingdom

There are also several agreements between Isle of Man and other jurisdictions which were signed but haven't yet come into force:

BE Belgium
LU Luxembourg

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 31 Signed Agreements

Isle of Man signed TIEAs which already came info force with the following jurisdictions :

AR Argentina
AU Australia
CA Canada
CN China
CZ Czech Republic
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
IS Iceland
IN India
IE Ireland
JP Japan
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SI Slovenia
SE Sweden
GB United Kingdom
US United States

There are also several agreements between Isle of Man and other jurisdictions which was signed but haven't yet come into force:

BW Botswana
ID Indonesia
IT Italy
LS Lesotho
CH Switzerland
TR Turkey

Automatic Exchange: Starts in September 2017

Isle of Man signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 50 Bilateral Agreements to Receive Information

the Isle of Man has signed bilateral agreements with 50 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom
UY Uruguay

Automatic Excnange: 58 Bilateral Agreements to Send Information

the Isle of Man has signed bilateral agreements with 58 jurisdictions to automatically send information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BZ Belize
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
CR Costa Rica
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
ID Indonesia
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
RO Romania
LC Saint Lucia
VC Saint Vincent and The Grenadines
WS Samoa
SM San Marino
SC Seychelles
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom
UY Uruguay

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in the Isle of Man
IGA in effect since 13 December 2013, Model 1

Isle of Man has FATCA agreement with the U.S. in effect since 13 December 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Isle of Man are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Manx financial accounts hold in U.S. financial institutions will be reported to Manx authorities.

Further Information