New Isle Of Man Tax Rates now In Effect
Published: Friday, June 10, 2005 Online-Casinos.com
NEW ISLE OF MAN TAX RATES NOW IN EFFECT
The idea is to attract more online gaming companies to the jurisdiction
Ise of Man licensing authorities are hoping to attract more i-gaming companies to the island jurisdiction with a new tax table approved by government in April and brought into operation this week.
With the prospect of competition from the new UK Gambling Act provisions on the horizon, the island's government is also probably positioning itself to compete more effectively for the business of both existing and new licensees.
Early feedback suggests that the sensibly moderate rates of taxation will be a keen incentive for licensees to remain on the island.
Whilst previously the taxation table entailed a flat rate of 2.5 percent on gross gaming yield (profit on bets taken), the new scheme is based on a graduated scale. Licensees will now be annually taxed at 2.5 percent on the first GBP 10 million yielded, 0.5 percent on yield bet GBP 10 million to GBP 40 million and 0.1 percent on yield exceeding GBP 40 million.
The new tax regime requires each licensee to file what amounts to a tax return / report with the Isle of Man Customs and Excise office detailing the companys revenue generated from betting stakes and the amount of money paid out in prizes and winnings. The operator is further required to report its gross gaming yield and how much duty is owed.
The upside of the sliding-scale scheme is that the Isle of Man is abolishing its general corporate tax--another element of the government's strategy to expand the island's technology community and enhance its reputation as a AAA rated jurisdiction.
The IOM is an attractive proposition for online gaming companies, offering a combination of world-class standards of practical regulation and an excellent telecommunication infrastructure and potential employee resource.
Tens of millions of pounds sterling have been invested over the last five years in upgrading the island's technology infrastructure. Improvements include the implementation of Europe's first Super Fast (HSDPA) 3G network; two self-healing (SDH) fiber rings connecting the Isle of Man to both the United Kingdom and Ireland; 100 percent broadband coverage; and free ADSL and ISDN connections available to businesses and individuals.
Set up incentives include grant packages of up to 40 percent for companies considering relocating to the island.
The IOM head of e-Business, Tim Craine says the government's intention is to make an impact on key members in the international online gaming industry by showcasing the benefits of doing business in the European Union and the benefits offered by the centrally positioned Isle of Man in particular.
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