Corporate tax
The Isle of Man Government offers 0% corporate tax on trading profits and a rate of 10% for defined regulated businesses like banking and insurance companies. As of April 2006 the rate of corporate taxation for companies trading from the IOM is:
| Standard rate for all resident and non resident companies | 0% |
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| Banking Busniess income | 10% |
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| Land and property income from Manx sources | 10% |
Research and development expenses are tax deductible.
VAT
Although not a member of the EU or part of the UK, the Isle of Man operates the EU VAT system in collaboration with the UK and enjoys a "special relationship" with the EU which gives access to EU markets for goods and simplifies VAT administration.
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