Business and Corporations

The information published in this section is of particular interest to corporate service providers, the accountancy and legal professions and to any individuals managing the income tax affairs of their own company.  

Budget 2024 – Changes to Tax Rates

In his budget speech on 20 February 2024 the Treasury Minister announced a number of measures applicable to companies and corporate taxpayers. These are outlined in Practice Note PN 222/24 (available via the Practice notes page) and relate to certain banking business, retail business and petroleum extractions activities or rights.

Statutory Document - 2024/0067

Statutory Document - 2024/0068

Statutory Document - 2024/0069

Loans to Participators

The rate of tax chargeable on net advances made in an accounting period under section A108 was increased with effect from 6 April 2024 to 22% in line with the increase in the higher rate of income tax applicable from that date. Net advances made in any accounting period ending on or after 6 April 2024 will be subject to the charge at this new rate.

Isle of Man Taxation of Companies and other Corporate Taxpayers – Overview

 A ‘pay and file’ accounting period basis of assessment is in operation for corporate taxpayers in the Isle of Man. All companies are corporate taxpayers, but the definition also includes entities such as foundations and associations.

It is compulsory for corporate taxpayers to file their income tax returns online themselves or via an appointed tax agent, unless they are exempt by law or have been granted an exemption by the Assessor. 

Resident corporate taxpayers are subject to tax on their worldwide income, non-resident corporate taxpayers are subject to tax on their Manx source income only. Both resident and non-resident companies are taxed on their income at the same rates.

  • The standard rate of income tax applicable to corporate taxpayers in the Isle of Man is 0%

  • A 10%/15%* rate of tax applies to income received by a company from any of the following sources:

    • banking business

    • retail business in the Isle of Man and have taxable income of more than £500,000 from such business. Further details may be found in Practice Note 181/13 and Practice Note 222/24 available via the Practice notes page

  • A 20% rate applies to taxable income from land and property in the Isle of Man (including property development, residential and commercial rental or property letting, contract car parking landfill, and mining & quarrying). From 6 April 2024 this same rate also applies to corporate income from petroleum extraction activities or rights

* see corporate tax rates page for further details.