Irish Income Levy Covered In IoM Tax Agreement

by Robert Lee, Tax-News.com, London

26 July 2011

Following an exchange of letters, the governments of the Isle of Man and Ireland have agreed on the interaction between the Irish income levy and the tax co-operation agreements in force between the Isle of Man and Ireland.

According to a statement from the Manx government, Ireland and the Isle of Man have agreed that the income levy is a substantially similar tax, within the meaning of Article 2(2) of the Agreement between the Isle of Man and Ireland for the Exchange of Information Relating to Tax Matters and its Protocol, to the income tax covered in Article 2(1)(b)(i) of the same Agreement. It is said that the income levy is therefore a tax covered by the above Agreement from the date of its coming into effect in Ireland on January 1, 2009.

It has also been agreed that the income levy exemption which is provided for under the domestic law of Ireland in certain circumstances is extended to residents of the Isle of Man where appropriate with effect from January 1, 2009.

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