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UK Contractors / Subcontractors

1. UK contractors that have operations on the Isle of Man may have to register as a contractor with the Income Tax Division if they engage subcontractors. If you need to register please contact Income Tax Division on (01624) 685410.
2. Contractors and subcontractors may also be subject to non resident tax on any profits attributable to their Manx operations if they do not fall within the Double Tax Agreement with the United Kingdom.

Individuals - If the contractor or subcontractor is an individual and will be resident for less than 183 days, deductions should be made at the Higher Rate as they may have a non-resident tax liability. It may be possible for an individual to reclaim all or part of the tax that has been deducted if they can prove that the Double Tax Agreement will apply. Each individual should contact Income Tax Division directly if they believe they may be due a repayment of tax deducted.

If the contractor or subcontractor is on the Island for at least 183 days in any tax year they may be deemed to be resident for Manx Income Tax purposes and charged as a resident to Income Tax.

Companies or Business Enterprises - Contractors or subcontractors that are Companies or Business Enterprises may be liable to Non-resident tax if they operate through a permanent establishment on the Island or will be engaged on a site for a period which will exceed 12 months. If you need to register you should contact Income Tax Division on (01624) 685410.

When can I apply for an Exemption certificate?

UK individuals may apply for an Exemption Certificate once they have been resident on the Isle of Man for 6 months.

UK companies or Business Enterprises may qualify for an IOM Exemption certificate if they have a current UK CIS5 or CIS6. Contact Income Tax Division on (01624) 685310 for further details.