Isle of Man legal and accounting and tax considerations in 2022
- Companies operating in Isle of Man enjoy a corporate tax rate of 0%. However, businesses in the banking, land and property sectors are subjected to a tax rate of 10% on their annual income;
- Individual income in Isle of Man is taxed at 10% rate on the first £10,500 of income and 20% on the rest;
- Companies in Isle of Man are required to prepare their financial statements under UK GAAP, IFRS or US GAAP;
- In accordance with Isle of Man company law, annual financial statements must be audited and the auditor must be independent and a member of one of the main UK professional bodies;
- A company in Isle of Man is eligible for audit exemption if it meets two of the following requirements i) the turnover of the year does not exceed £5.6 million ii) the balance sheet total does not exceed £2.8 million during the year iii) the total number of employees does not exceed 50 people during the year;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.