Space Industry Shows Interest In Isle of Man Following Tax Break Announcement

by Jason Gorringe, Tax-News.com, London

26 February 2004

The decision by the Manx government to introduce a zero-rate of corporate tax on firms involved in the space exploration industry has already stoked much interest within the US aeronautical community according to a report in the local media.

“I cannot stress enough the positive impact this news has had within the space industry, promoting the Island's good name and potential as a business jurisdiction,” observed Manx-born Chris Stott, the chief executive of Houston-based ManSat, the Isle of Man online reported. “With this news the Isle of Man Government has taken a truly forward-looking approach to winning business for the Island.”

Mr Stott noted that several firms have expressed an interest in Treasury Minister Alan Bell’s announcement, all of which are said to be Fortune-500 listed companies. He also revealed that an island-based firm is close to securing a contract with the Advanced Space Propulsion Laboratory (ASPL) to supply components for NASA’s new ‘VASMIR’ Mars engine.

The new tax break, announced by Bell in the recent budget will encompass the “manufacture, operation, sale or other activities provided in respect of launch vehicles, satellites or similar assets, including those educational and other training activities that are directly associated with the industry."

The jurisdiction currently has a zero tax regime in place for a number of industries, including shipping, insurance and fund management, and plans to move towards a zero tax rate for all businesses by 2006.

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