As of today, (1st July 2011) the Isle of Man has moved fully to automatic exchange of information with European Union member states in accordance with the EU Savings Directive, making it one of the first non-EU country to do so.
Essentially, this Directive counters cross-border tax evasion via the collection and exchange of information about bank interest earned by people outside their state of residence.
Manx regulators say this move is a further and important expression in the Island’s determination to be “at the forefront of those countries complying with accepted international benchmarks of best practice in transparency and regulation.”
To recap on the Directive, the move to automatic exchange of information means the Isle of Man has removed the transitional withholding tax option allowed by the Directive and which entitled complying countries a transitional period to levy a withholding tax at a rate of 15% for the first three years (until 30/6/08), 20% for the following three years (until 30/6/11), and 35% thereafter as an alternative to information exchange. www.gov.im/fsc
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