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Fiscal Representative in Isle of Man

Fiscal Representative in Isle of Man

Companies that conduct business in the Isle of Man and need to register for VAT purposes will need to appoint a fiscal representative in Isle of Man, a third party that will handle all or part of the relevant submissions for VAT purposes and for other taxes.

As part of the solutions we provide for Isle of Man company formation, our team is able to offer services to businesses in need of appointing a local tax representative.

The role of the fiscal representative in Isle of Man

The tax or fiscal representative has a key role in the VAT registration for a company that does business in the Isle. In addition to this, the representative can also act on behalf of the taxpayer in other tax-related matters, as well as the needed tax submissions, as deemed necessary by the Isle of Man Government.

VAT registration is mandatory in the following cases:

  • The total taxable supplies of the company exceed £85,000 on a rolling 12-month basis (in this case, the registration is submitted at the end of the month in which the total value of the taxable supplies made in the preceding 12 months exceeds the mentioned amount);
  • When the company expects that it will exceed the threshold in the following 30 days;
  • When the company must register for value-added tax in the Isle of Man.

Where a fiscal representative in the Isle of Man needs to be appointed, a special registration form is in place, as opposed to when the VAT registration is submitted by the company director, for example. The registration form will include the name of the IoM tax representative (fill name as well as address) and a PO box cannot be used as the tax representative’s address. Likewise, an address for an accommodation taken up in the Isle of Man is not acceptable.

In those cases, in which investors purchase an already existing business that has a VAT registration number, the last company owner’s number can be kept. Our team specializing in Isle of Man company registration can give you more information.

The fiscal representative in the Isle of Man will have the power to register the business for VAT purposes when this is needed, however, he will submit the needed documents, as well as the registration declaration in collaboration with the owner of the company, meaning that the director or secretary will also need to sign the application (in the case of corporate bodies).

The fiscal representative can assist with the VAT registration for corporations, as well as other business forms such as sole proprietorship, partnerships, or unincorporated bodies.

The fiscal representative in the Isle of Man is also able to answer questions about VAT grouping, how to assign a VAT group representative, or how to change one, as well as others.

IoM taxes

As the fiscal representative is thoroughly involved in the tax matters of the company it represents, our team specializing in setting up a company in the Isle of Man lists the most important taxes for companies:

  • 0% corporate income tax for most types of business activities;
  • 10% corporate income tax for banking businesses as well as retail businesses that exceed the threshold of an annual taxable profit value of £500,000 or above;
  • 20% in the case of property development profits or rents derived from the Isle of Man.

Working with a fiscal representative in the Isle of Man is useful for understanding the various tax filing requirements, duly filling in the return forms, as well as making the mandatory registrations.

Company owners who wish to ensure that their business remains tax-compliant can seek tailored bookkeeping and accounting solutions from our CPA in the Isle of Man.

Contact us for more information about the services offered by the fiscal representative, as well as complete assistance for incorporations in the Isle of Man.