More offshore banks could set up in the Isle of Man, following the announcement taxation will be 0% on all earning on capital and reserves, said the Association of Licensed Banks (ALB) in the island.
The announcement made in the budget also said income streams derived from business which is run from within the Isle of Man but which is not viewed as core banking activities will also be 0%. Tony Wild, president of the ALB, commented: “Measures represent a significant boost for the banking sector in the island. Existing business can now plan with certainty over the medium term, in the knowledge they will not be penalised for retaining surplus reserves locally. “It is hoped that existing banking groups will review their offshore plans and consider the island as a sound and tax efficient lo...
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