KPMG in the Isle of Man Tax Alert April 2019
The Isle of Man's Income Tax Division, along with the other Crown Dependencies, has issued long-awaited draft Guidance Notes in respect of the economic substance requirements introduced by the Income Tax (Substance Requirements) Order 2018. This follows the recent removal of the Island (and other Crown Dependencies) from the EU's "Grey List", which may be seen as an effective endorsement of the Island's policies and a public acknowledgement by the EU that the Isle of Man is not a tax haven. A link to the draft Guidance Notes can be found here.
Overall, the Guidance Notes are not as detailed as many had expected. However, they do establish some useful principles that will assist affected companies to determine their compliance with the new requirements. We would highlight the following aspects:
Furthermore, there are a number of important matters which we would bring to your attention:
As always, KPMG will be assisting its clients in addressing the requirements of the legislation.
The term Partner refers to a member of KPMG LLC / KPMG Audit LLC.
© 2020 KPMG LLC, an Isle of Man limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.