Why are companies drawn to Isle of Man for routing their funds to other destinations?
For a number of projects, Isle of Man companies are the vehicles of choice. Of all the Indian companies listed on AIM, 75 per cent was incorporated in the Isle of Man. The benefits of companies listed on the Isle of Man are that they are not subject to corporation tax, capital gains tax, stamp duty or any other form of taxation. Dividends paid to investors are not subject to withholding tax. They can pay the dividends in full. Even on interest on loans, they need not withhold any portion. So they are very attractive companies from the fiscal sense. Besides the fiscal incentive, Isle of Man has a strong legal system, a good international reputation and institutional investors understand the legal system since it is very close to the British legal system. It also has a well-regulated environment. Does the tax benefit for companies incorporated in the Isle of Man accrue irrespective of the country where they actually operate? The zero rate of corporate tax applies to all the Isle of Man c
