Isle of Man to tax UK Retailers
26th February, 2013
Major retailers such as B&Q, Marks and Spencer and Tesco who it is estimated are producing local profits of more than £0.5m a year will be taxed for the first time, as part of a new proposal outlined in Isle of Man's budget.
The 10% rate of Company tax starts in April and will affect businesses such as supermarkets and petrol retailers.
Currently UK retailers with Isle of Man branches pay their tax to the UK on any profits made on the island.
Treasury Minister Eddie Teare stated: "in the long term there will be no extra cost to the organisations affected"
He said: "The amount of cash they pay to the Isle of Man government will be off-set against the amount they pay to the UK government - so their total tax bill is not expected to change, there will be a slight administrative burden but nothing else."
IOM Treasury said for organisations which do not exceed the limit of £0.5m, the standard 0% rate will continue to apply.
