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 interest payments made to individuals (beneficial owners) resident in EU Member States, 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.

Paying agents are required to submit the information to be exchanged as an XML file compatible with the standard format for the exchange of information used within the EU; FISC 153. 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.

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

Practice Notes

PN 168/11 European Directive on the Taxation of Savings Income - New Reporting Procedures and Related Matters for Paying Agents 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

Income Tax (Exchange of Information) Temporary Taxation Order SD 291/10 can be found here

Agreements

A copy 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