Ireland-IoM Double Tax Agreement Enters Into Force

by Jason Gorringe, Tax-News.com, London

20 January 2009

The Isle of Man government this week announced that the agreement for the avoidance of double taxation and fiscal evasion with respect to income tax with Ireland has come into effect.

The agreement, which was signed between the two parties on April 24, 2008 alongside an economic cooperation agreement, aims to stimulate economic relations and mutual investment between the two countries.

The Isle of Man ratified the agreements on June 17, 2008, and the Chief Minister, Tony Brown, informed the government of Ireland that ratification had taken place.

The Irish Minister for Finance, Brian Lenihan, has now confirmed that Ireland has completed its own ratification procedures, and as a consequence the agreements entered into force on December 31, 2008.

The two agreements are:

• a tax information exchange agreement; and
• an agreement for affording relief from double taxation with respect to certain income of individuals and establishing a mutual agreement procedure in connection with the adjustment of profits of associated enterprises.

The IOM government says that the negotiation, signing and ratification of tax co-operation agreements demonstrates the Isle of Man’s commitment to international standards and the global effort to establish a system based on co-operation between countries, transparency and effective exchange of information in tax matters, all of which strengthen financial stability.

The Isle of Man was one of the first international financial centres to make a commitment to the OECD principles of transparency and exchange of information and has since then taken the lead among smaller international financial centres in implementing these principles. To date, the Isle of Man has concluded Tax Information Exchange Agreements with the USA, the Netherlands and the seven Nordic countries.

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