Isle of Man: 2024 budget includes proposed increases in corporate and individual income tax rates
Proposed tax changes
Proposed tax changes
The Treasury Minister yesterday presented the budget for 2024 which includes the following proposed tax changes:
- Increase to 22% in the top rate of individual (personal) income tax for both residents and nonresidents effective 6 April 2024
- Increases to thresholds and limits under the national insurance system effective 6 April 2024
- Changes to “zero/ten” corporate income tax regime
- Temporary increase from 10% to 15% to the rate of tax applicable to profits from banking business and from “large” retail operations effective for the 2024/2025 tax year only (aimed at situations in which these profits would otherwise be subject to so-called “top-up tax” in other jurisdictions as a result of implementation of the Pillar Two global minimum tax rules)
- Introduction of a 20% rate on income from petroleum (including natural gas) extraction activities effective 6 April 2024
- Changes to the calculation of benefits-in-kind in respect of the provision of cars and fuel, with the broad effect that the amount of tax benefits will shift from being based on cylinder capacity to being based on a combination of the value of the car and its emission levels
The Treasury Minister also referred to a newly published “Tax Strategy” that will be presented for discussion next month which is expected to set out a clear intention to retain the zero/ten system as well as a commitment to not introducing any new taxes on capital gains or wealth.
Read a February 2024 report prepared by the KPMG member firm on the Isle of Man
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.