It is increasingly common for business people to form their companies overseas, and one of the most popular jurisdictions for the formation of a company is the Isle of Man. Positioned between the UK and Ireland, the Isle of Man has developed a reputation as the ideal place to register an overseas company, thanks to the business-friendly tax policy that exists on the island, and a number of other factors.
The Isle of Man has long had a reputation as a hub for corporate finances particularly offshore which makes it a much sought after jurisdiction when considering setting up an offshore company.
The main reason that people think of the Isle of Man when considering incorporating an offshore company is its unrivalled reputation in the sector. There are however numerous advantages when it comes to the registering of an Isle of Man Company.
Tax Advantages of the Isle of Man:
– The main tax benefits associated with Isle of Man Companies is that there is no capital gains tax, wealth tax, inheritance tax (IHT) or stamp duty;
– Dividends paid to non-residents aren’t liable to any tax and double tax relief is in place for any foreign paid taxes. Also, there is no withholding tax and losses can be carried forward in perpetuity. These are the tax benefits that help to make the Isle of Man such an attractive jurisdiction for offshore companies;
– Losses can be carried forward indefinitely provided a continuity of business test is satisfied. There are also provisions for loss relief within groups of companies;
– Double tax relief is available for foreign tax paid;
– No inheritance tax;
– Banking has been in existence in the Isle of Man for the last two hundred years and has experienced continued growth for the last three decades. This is mainly due to the governments support and incentives to help the financial sector. All major United Kingdom high street banks are represented on the Island and a number of major international banks are also present. The Isle of Man banking sector is renowned for its customer service, image and reputation;
– There are no exchange controls or other financial restraints imposed on an Isle of Man Company;
– Isle of Man has shown that the government is agile and responsive so change can be delivered faster than in larger jurisdictions;
– Excellent telecoms infrastructure and broadband coverage;
– Political and economic stability;
– Long established legal system;
– Although the Isle of Man is not part of the UK following the 1979 Customs and Excise Agreement it is treated as part of the UK for VAT purposes. This means that imports and exports between the Isle of Man and the UK are not treated as such. VAT law in the Isle of Man generally mirrors that of the UK and is administered by the Isle of Man Customs and Excise;
– The Isle of Man government is determined to keep the Isle of Man’s reputation as an attractive place for offshore incorporation by continuing to introduce legislation in order to offer a broad a range of corporate structures as possible;
The Isle of Man most certainly has a lot to offer when considering incorporating an offshore company its adaptable government are constantly striving to retain its excellent reputation and keep it an attractive place for the setting up of an Isle of Man company.