Isle of Man Accounting and Tax Services
By engaging Tetra Consultants for Isle of Man accounting and tax services, you can be confident that you will be in the best hands. Our team of Chartered Accountants will ensure that your firm’s financial statements, corporate tax returns and audits are timely completed without the need for you to travel.
Additionally, outsourcing your accounting and tax needs to Tetra Consultants will allow you to reduce overhead costs while be ensured of timely reporting and filings. Before the start of the engagement, our Chartered Accountants will also keep you updated on all the required deadlines and expectations. Thereafter, we will prepare all required filings in advance to ensure that the stipulated deadlines are met.
Annual Reporting Requirements
- According to the Isle of Man Income Tax Division, the Isle of Man tax year runs from 6 April to the following 5 April.
- Tax returns are required to be filed by 6 October following the end of the company’s tax year.
- Companies incorporated in the Isle of Man have to prepare audited financial statements unless it meets 2 of the following requirements:
- a turnover not exceeding £5.6 million;
- a balance sheet total not exceeding £2.8 million; and
- number of employees not exceeding 50
- Annual return fees have to be filed on a yearly basis within 1 month.
- Specific annual return fees required of your company will depend on its status – standard, exempted or registered as charities.
- The Isle of Man considers documents as registered only when they have been checked for completeness and consistency. Otherwise, a rejected document may have your company liable to make penalty payments.
Isle of Man Corporate Income Tax
- Generally, corporate tax rate for all resident and non-resident companies is charged at 0%.
- As for land and property income sourced from the country, you can expect to be charged a 20% tax rate.
- For retail businesses with profits over £500,000, a 10% tax rate will apply.
- The due date for the filing of company tax returns is imposed at 12 months and 1 day since the end of the accounting period.
Isle of Man Withholding Tax
- Generally, you can expect a 0% withholding tax rate unless otherwise specified.
- As a rule of thumb, income from land and property is instead subjected to a 20% rate. While, for most banking businesses, a withholding tax rate will be imposed at 10%.
Isle of Man Value Added Tax
- Registration for Value Added Tax is only required if you meet the following:
- a total value of your taxable supplies exceeding £85,000 made in the preceding 12 months;
- at any time, you can expect that your taxable supplies will exceed £85,000 in the following 30 days;
- Applications can be submitted by post to the Business Advice Centre.
- Generally, the standard Value Added Tax Rate is imposed at 20% for most goods and services.
- However, you can expect a reduced rate of 5% for some goods and services such as children’s car seats and home energy.
- While, for most food and children’s clothes, they are considered as zero-rated goods and will be charged a Value Added Tax Rate at 0%.