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Isle of Man - Other taxes and levies

Isle of Man - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in the Isle of Man? If so, what are the rates for employers and employees?

Yes, National Insurance Contributions.

Employer and employee

GBP

Paid by employer

Paid by employee

Total

Up to GBP125/week

0.0%

0.0%

0.0%

GBP 125.01 – 784/ week

12.8%

11%

23.8%

Over GBP784/week

12.8%

1.0%

13.8%

Social security contributions are payable by both employers and employees and are calculated as a percentage of the employee’s wages. The system and rates are, apart from a few minor differences, largely the same as the U.K. social security rates and they are not deductible for income tax purposes. The contribution year follows the 6 April to 5 April income tax year.

The Isle of Man has a reciprocal arrangement with the United Kingdom in respect of social security contributions. In addition, a foreign national employed by an employer based outside the United Kingdom/Isle of Man and sent to work in the Isle of Man does not have to pay Isle of Man social security contributions if a reciprocal agreement applies between the United Kingdom/Isle of Man and the foreign country/jurisdiction. This liability will only be deferred for the period of time stated in the agreement in question.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in the Isle of Man?

No.

Real estate tax

Are there real estate taxes in the Isle of Man?

No.

Sales/VAT tax

Are there sales and/or value-added taxes in the Isle of Man?

The Isle of Man is effectively part of the United Kingdom for VAT purposes and thus mirrors the U.K. legislation. The rates in force are the same as those applicable in the United Kingdom that is exempt, 0 percent rate, and standard rate of, 20 percent, and a reduced rate of 5 percent.

Other indirect taxes include airport duty.

Unemployment tax

Are there unemployment taxes in the Isle of Man?

None

Other taxes

Are there additional taxes in the Isle of Man that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

No.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?  

No. However, income arising from such assets does need to be reported on the Manx income tax return if the individual is Isle of Man tax resident.

Disclaimer

All information contained in this publication is summarized by KPMG LLC, the Isle of Man member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Isle of Man tax legislation, guidance published by the Isle of Man Income Tax Division and applicable case law as at the date of publication hereof.

© 2020 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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