New Requirements for Accounting Records and Updated Guidance on the Taxation of Distributions from Corporate Taxpayers - Update from the IOM Government
On 20 January 2017 new income tax regulations came into operation in the Isle of Man regarding the making and keeping of accounting records. The new regulations (SD 2016/0343) strengthen the Island’s income tax legislation regarding the making and keeping of accounting records and introduce the international standard for the record retention period.
Draft regulations were subject to a public consultation exercise in 2016, the consultation document being issued on 12 July 2016 and the response document on 6 January 2017.
Guidance concerning who the regulations apply to, what they will require and what happens if they are not followed has been published in GN 54 on the Isle of Man Treasury Income Tax Division’s website.
The Income Tax Division has also updated Guidance Note GN 49 concerning the taxation of distributions from corporate taxpayers. The update concerns foreign income of a resident company (“box 3 income”) and introduces a third category of foreign income that can be included in box 3.
If we at Browne Craine can be of assistance in advising you or your business on the adequacy of your accounting records, please contact us on +44 (0) 1624 629369 or email us at: firstname.lastname@example.org.