close
Share with your friends

Isle of Man - Overview and introduction

Isle of Man - Overview and introduction

Taxation of International Executives

1000

Related content

The town of Peel on the Isle of Man in the Irish Sea

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 their own tax return and will be responsible for paying their 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/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.

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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today