Taxation of international executives
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.
|GBP||Paid by employer||Paid by employee||Total|
|Up to GBP118/week
|GBP 118.01 – 784/ week
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/territory. This liability will only be deferred for the period of time stated in the agreement in question.
Are there any gift, wealth, estate, and/or inheritance taxes in the Isle of Man?
Are there real estate taxes in the Isle of Man?
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.
Are there unemployment taxes in the Isle of Man?
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.
Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country/territory’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.