Isle of Man to slash corporation tax to zero in bid to attract investment

THE Isle of Man announced yesterday it would cut corporation tax to zero for most companies, as of April 5, in order to stimulate inward investment.

A 10% rate will remain for banks and some other firms.

The measure, announced by the territory’s Treasury Minister Allan Bell in his annual budget, is in line with a promised five-year taxation plan announced in 2000.

The budget also introduced a cap on personal income tax at a maximum level of £100,000 per annum in a bid to attract ‘high net-worth, entrepreneurial individuals’.

The Isle of Man has an 18% rate for higher-rate tax payers.

“The 2006 budget marks the delivery of our promises to the international community and demonstrates the Isle of Man’s ongoing commitment to innovation,” said Mr Bell in a statement.

“It provides for increases in public expenditure and the provision of further assistance to those in our society who need it most, both at home and overseas,” he said.