Isle of Man - Overview and introduction

Isle of Man - Overview and introduction

Taxation of International Executives

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Individuals resident in the Isle of Man are subject to income tax on their worldwide income. Non-residents are taxable on income from Manx sources only.

The Isle of Man does not tax capital gains nor does it have any form of gifts or annual wealth tax. There is no inheritance tax or estate duty but there is a small probate levy.

Following a couple’s marriage or commencement of residence after 6 April 2006, couples are assessed independently for Manx tax purposes unless they elect for joint taxation. Where couples are independently assessed, each spouse will file his or her own tax return and will be responsible for paying his or her own tax liability. If a married couple elects for joint taxation, assessments will be made on a married couple as a single entity. In this case, both husband and wife are responsible for filing a tax return detailing their joint income and are liable jointly and severally for any outstanding tax liability.

Taxable income (after deduction of personal allowances and available reliefs) is taxed at graduated rates of 10 percent and 20 percent, with the exception of non-resident individuals whose income is charged to income tax at a flat rate of 20 percent, subject to certain excepted income. 

Social security contributions are payable by both employers and employees and are calculated as a percentage of the employee’s wage.

The official currency of the Isle of Man is the British Pound Sterling (GBP).

Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.

© 2016 KPMG LLC, an Isle of Man Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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