The new rules would take effect for accounting periods beginning on or after January 1, 2025.
The Isle of Man income tax division (ITD) on October 24, 2024, published an update on the intended implementation of the OECD Pillar Two global minimum tax in a letter sent to all Isle of Man entities likely to be within the scope of the new rules. The draft legislation is now available and will be considered by the Parliament (Tynwald) in November 2024.
The ITD confirmed the implementation of a multinational top-up tax (MTUT), also known as an income inclusion rule (IIR), alongside the previously announced domestic top-up tax (DTUT). The new rules would take effect for accounting periods commencing on or after January 1, 2025.
The ITD is developing an online service to enable in-scope groups to meet their DTUT and MTUT filing obligations. In-scope groups would be required to register for this online service within 12 months from the start of their ultimate parent entity’s first accounting period under the Pillar Two rules.
Read an October 2024 report prepared by the KPMG member firm in the Isle of Man