Substance requirements will affect Isle of Man tax resident companies deriving any income from activity in a variety of geographically mobile business sectors. The Isle of Man Government has approved legislation in relation to the substance requirements which came in to effect for accounting periods starting on or after 1 January 2019.
The nature of the requirements varies between sectors, with general requirements that will apply to all affected companies except for pure equity holding companies which will have to meet more relaxed requirements. The general requirements for a relevant company are that;
Watch the latest discussions from our tax team about the Economic Substance Regulation requirements.
Watch Phil and Kevin discuss the Economic Substance Regulation requirements.
We consider that complying with the substance rules will be via a three step process: