Hon. Howard Quayle MHK, Chief Minister, and the Rt. Hon. Mel Stride MP, Financial Secretary to the Treasury and Paymaster General, today (Monday 2 July 2018) signed the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Isle of Man for the Elimination of Double Taxation with respect to Taxes on Income and on Capital Gains and the Prevention of Tax Evasion and Avoidance (Agreement).
The Agreement replaces the Double Taxation Agreement that was signed in 1955.
The Agreement is based on the latest OECD model wording and includes provisions that reflect the Isle of Man’s commitment to the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
The Chief Minister said:
‘In signing this Agreement we are delivering on a commitment made in March 2016 to renegotiate our old agreement with the UK.’
‘This new Agreement will provide clarity to Isle of Man residents with UK income. It is a modern agreement based on the OECD standard, which fulfils our commitment to the BEPS minimum standard in respect of our most significant partner jurisdiction and continues our longstanding policy of cooperating with the UK to eliminate double taxation and to counter tax avoidance and evasion.’
The Agreement comprises an exchange of letters between the Chief Minister and the Financial Secretary to HM Treasury, the Double Taxation Agreement and an accompanying Protocol. The Agreement will be presented to Tynwald after the summer recess and subject to it being ratified by Tynwald and by the UK, it is expected that the Agreement will be effective during 2019.