Global

Details

  • Service: Tax, Global Mobility Services
  • Type: Regulatory update, Survey report
  • Date: 7/8/2014

Isle of Man - Other taxes and levies 

Taxation of international executives
Social security tax
Gift, wealth, estate, and/or inheritance tax
Real estate tax
Sales/VAT tax
Unemployment tax
Other taxes


Social security tax

Are there social security/social insurance taxes in the Isle of Man? If so, what are the rates for employers and employees?


Yes, National Insurance Contributions.


Employer and employee


GBP Paid by employer Paid by employee Total
Up to GBP118/week 0.0% 0.0% 0.0%
GBP118-770/week 12.8% 11.0% 23.8%
Over GBP770/week 12.8% 1.0% 13.8%

Social security contributions are payable by both employers and employees and are calculated as a percentage of the employee’s wages. The system and rates are, apart from a few minor differences, largely the same as the U.K. social security rates and they are not deductible for income tax purposes. The contribution year follows the 6 April to 5 April income tax year.


The Isle of Man has a reciprocal arrangement with the United Kingdom in respect of social security contributions. In addition, a foreign national employed by an employer based outside the United Kingdom/Isle of Man and sent to work in the Isle of Man does not have to pay Isle of Man social security contributions if a reciprocal agreement applies between the United Kingdom/Isle of Man and the foreign country. This liability will only be deferred for the period of time stated in the agreement in question.


back to top

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in the Isle of Man?


No.


back to top

Real estate tax

Are there real estate taxes in the Isle of Man?


No.


back to top

Sales/VAT tax

Are there sales and/or value-added taxes in the Isle of Man?


The Isle of Man is effectively part of the United Kingdom for VAT purposes and thus mirrors the U.K. legislation. The rates in force are the same as those applicable in the United Kingdom that is exempt, 0 percent rate, and standard rate of, 20 percent, and a reduced rate of 5 percent.


Other indirect taxes include airport duty.


back to top

Unemployment tax

Are there unemployment taxes in the Isle of Man?


None.


back to top

Other taxes

Are there additional taxes in the Isle of Man that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.


No.




© 2014 KPMG LLC, an Isle of Man Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

 

Share this

Share this

Contact

 Isle of Man

Taxation of international executives