ISLE OF MAN Tax haven to cut corp. tax

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This is a digitised version of an article from The Cayman Compass's print archive. Occasionally, the digitisation process introduces transcription errors, or other problems.

See the article in its original context from June 2000.

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London, (Reuters) - The Isle of Man plans to cut corporate tax to 10 percent from 20 percent for trading companies over the next three to five years, the island's government said on Wednesday. The move is part of a programme to overhaul its financial system.

Plans are also afoot to provide an updated Double Taxation Agreement with Britain which could also apply equally to any other jurisdiction wishing to join discussions, it said in a statement. The island also plans to remove the ringfence regime around exempt insurance and shipping companies, with both categories brought within the domestic tax system, at a zero rate.

The island's government said the new reforms would go a long way towards meeting a number of concerns of the Organisation for Economic Cooperation and Development. "Our strategy for companies is one of low rates of tax linked into the introduction of the new corporate tax system, with incentives for new investment and a simplification of the overall tax system," said Richard Corkill, Minister for the Isle of Man Treasury.