Individuals and Companies who are resident in the Isle of Man for income tax purposes enjoy complete independence from the United Kingdom on matters of direct taxation. The Island has only one Double Taxation Agreement and this is with the United Kingdom. It was entered into in 1955 and provides for the granting of relief from double taxation on certain incomes passing between the two countries.
Indirect Taxes
Customs and Excise duties, VAT and import and export controls on certain goods apply in the Isle of Man, but there are no Customs barriers between the UK and the Island. The Island has the statutory authority to levy its own rates of duty and tax, but an agreement exists between the Governments of the UK and Isle of Man whereby the Island keeps its indirect taxation closely aligned with that in the UK.
