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Distributable Profits Charge

PLEASE NOTE THAT THE DPC REGIME FOR COMPANIES HAS BEEN REPEALED WITH EFFECT FOR ACCOUNTING PERIODS COMMENCING ON OR AFTER 6 APRIL 2008. THE ATTRIBUTION REGIME FOR INDIVIDUALS (ARI) APPLIES FROM THIS DATE FOR MEMBERS OF RELEVANT COMPANIES. PLEASE SEE THE SECTION ON ARI.

The Distributable Profits Charge (DPC) was introduced on 6 April 2006, for the year of assessment 2006/2007 onwards, at the same time as the mainstream 0% rate of income tax for companies. The DPC is required in order to encourage companies to continue to make distributions and to counter any tax planning opportunities that may exist in a 0% tax rate regime.

The DPC is not a corporate income tax; it is a measure designed to maintain income tax revenue flow from individuals now that the standard rate of corporate income tax is 0%. It is a charge on Manx resident members of companies: accounted for by the company on their behalf, and creditable against their personal income tax liability when distributions are eventually made.

The DPC is only applicable to non-distributing companies, which will be required to account for the charge only in respect of the amount of total distributable profits attributable to members resident in the Isle of Man. The qualifying criteria for distributing company status are detailed in GN36 - available for download below.

Documents available for download

• Current versions
  • The latest version of GN36 Distributable Profits Charge Guidance Note can be found here
  • The DPC voucher can be found here
  • The DPC Computation form (R179) can be found here

• Archived versions
  • July 2006 - GN36 Distributable Profits Charge can be found here

All documents are available on request by contacting the Division at Government Office, Bucks Road, Douglas, Isle of Man IM1 3TX. Telephone: 01624 685400 Fax: 01624 685351