A new tax registration requirement came into force on 17 June 2021 for those carrying on a business that is taxed as a partnership in the Isle of Man, including limited liability companies.
All partnerships or limited liability companies that were formed or commenced business in the Isle of Man before 17 June 2021, which are not exempt from the registration requirement, are required to register by 15 September 2021.
The deadline for the registration of partnerships that were formed or commenced business in the Isle of Man after 17 June 2021 is generally 90 days from the date of formation or commencement of business.
The following partnerships must register with the Assessor:
- Isle of Man General Partnerships (including those where the partners are a married couple or civil partners)
- partnerships (of all types) and limited liability companies formed outside the Isle of Man
The following partnerships are exempt from registration with the Assessor:
- limited partnerships and limited liability companies formed in the Isle of Man
- partnerships that are already filing partnership or limited liability company income tax returns with the Assessor
A specific form, R255, has been introduced to enable registration with the Assessor. The form is available on the Forms page of the Income Tax Division’s website.
Registration with the Assessor is not optional, and a partnership that does not register within the specified 90 days registration requirement commits an offence of which any of the partners may be found guilty.
The Income Tax Division of Treasury has also issued a Practice Note PN217/21 'New Tax Registration Requirement for Partnerships and Limited Liability Companies' and also Guidance Note GN 59 'Application of the Income Tax Acts to Partnerships and Limited Liability Companies', which explains the new registration requirement in more detail.
These are available on the Practice Notes and Guidance Notes page of the Income Tax Division’s website.