Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400

European Savings Directive Information

From 1 July 2011, automatic exchange of information on savings income will take place in all cases.

Responsibility for reporting information rests with the Paying Agent. A Paying Agent is a person who is established in the Isle of Man who makes interest payments in the course of his business or profession e.g. a bank.

The press release announcing the change in policy can be found here.

A Practice Note regarding reporting requirements from 1 July 2011 can be found here and Guidance Notes relating to the application of the Directive from 1 July 2011 can be found here.

The current version of the FISC 153 specification is available for download at the bottom of this page together with example files in xml.

Background

The EUSD came into force in 2005 and provides for automatic exchange of information on savings income. Its ultimate aim is to enable savings income in the form of interest payments made in one participating country to individuals resident in an EU Member State to be made subject to effective taxation in accordance with the laws of that Member State.

Although the Isle of Man is not part of the European Union it agreed to introduce measures equivalent to the EUSD with effect from 1 July 2005.

During a transitional period the EUSD allows either exchange of information or for tax to be deducted from interest payments (a withholding tax or, as it is called on the Isle of Man, retention tax).

The Isle of Man implemented the EUSD by entering into bilateral agreements with all EU member States.

There are links below to copies of the model agreements and all the press releases, practice notes, guidance notes, legislation and forms relating to the EUSD issued by the Income Tax Division.

Press releases

A press release marking the commencement of the Directive can be found by clicking here.

A further press release issued in July 2006 can be found here

A press release announcing that the Isle of Man will move to automatic exchange of information from 1 July 2011 can be found by clicking here

Practice Notes

Practice Note 118/05 outlining reporting procedures for paying agents can be found here

Practice Note 140/07 (supplementary to PN 118/05) provides additional information in relation to the reporting requirements of existing and new paying agents following the accession of Bulgaria and Romania to the European Union and can be found here

Practice Note 150/08 which is a further update on reporting procedures and related matters for paying agents can be found here.

Practice Note 168/11 outlining reporting requirements for paying agents from 1 July 2011 can be found here

Guidance Notes

Guidance Notes (GN31) on the application of the European Savings Directive for Isle of Man Paying Agents can be found here

Guidance Notes GN31a on the application of the European Savings Directive for Isle of Man Paying Agents with effect from 1 July 2011 can be found here

Legislation

Statutory Document 150/05 Income Tax (Retention of Tax and Exchange of Information) (Temporary Taxation) Order 2005 can be found here

Statutory Document 378/05 Income Tax (Retention of Tax and Exchange of Information) Regulations 2005 can be found here

Agreements

Copies of the model agreement is available here.

Forms

The 'Retention Tax Deducted Form' to be completed by paying agents 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

Downloadable Documents