IoM Moves To Automatic Information Sharing

by Robin Pilgrim, LawAndTax-News.com, London

07 July 2011

The Isle of Man has implemented an earlier decision to move to the full, automatic exchange of information with European member states under the EU Savings Tax Directive.

In a statement announcing the transition, the Isle of Man government said that the move is a further and important expression of the determination of the Isle of Man to be at the forefront of those countries complying with accepted international benchmarks of best practice in transparency and regulation.

Commenting on the move to automatic exchange Treasury Minister, Anne Craine, said; “By moving fully to automatic exchange of information with our EU partners, the Isle of Man has again demonstrated its commitment to being an internationally responsible and co-operative finance centre which maintains an effective and pro-business regulatory environment; enabling us to weather the challenges being faced by all countries in the global economic downturn."

Many territories which have not yet decided to implement a regime for the automatic exchange of tax information continue to operate withholding tax policies; the tax is applied at 35% on interest earnings (up from 20% on July 1st)of which 75% is then remitted to the home country of the beneficiary. For instance, this continues to be the case in Jersey.

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