This commitment was contained in the Manx Taxation Strategy 2013-2016, which was presented to the Tynwald yesterday by the treasury minster Eddie Teare where it received unanimous approval of members.
Teare said that “implementation of the strategy will be phased, with a series of measures being set out in the remaining budgets of this parliament”.
There was an extensive public consultation on the strategy last year, with one respondent stating that he would “consider leaving the Isle of Man if there is any adverse change in this area (zero-10 tax regime) resulting in the loss of provision of employment, general spending and investment”.
As reported, the consultation did allow for the possibility of changing the corporate tax from its 0% rate for all businesses except banking or Manx land and property, which are taxed at 10%.
In Jersey, all financial services companies are taxed at 10% and both Guernsey and Jersey also have 20% tax rates for utility companies and land and property companies.
The treasury also announced that it had no intention to introduce capital gains or inheritance taxes in the Isle of Man, and its plans to introduce legislation allowing the island to “operate all aspects of double taxation agreements”. It will also “consider working with other countries and multilateral organisations on the development of cooperation systems similar to FATCA”.
To see the tax strategy document click here
