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Agreement on Processing of Personal Data CZ / EN

Isle of Man

  • Prestigious jurisdiction, especially suitable for those who need a VAT number to trade within the EU.

    It is possible to open bank accounts on IOM, and for complete privacy protection, it is possible to provide Nominee service for signing a bank form to open an account.

    Regarding taxes and duties, IOM is in a “common wallet” with the United Kingdom. Therefore, the standard VAT rate is in line with the UK rate of 17.5%. The income tax rate applicable to a IOM company that does not operate on IOM in the banking and real estate business is 0%.

    IOM is an established international business and finance center based on political stability, low taxes and a stable fiscal and regulatory environment, independent of the UK.

    IOM is the UK’s self-governing dependent territory. It has never been part of the United Kingdom, but it‘s part of the British Isles. Technically, it is independent of all UK matters except foreign affairs and defense, both of which are within the UK Government’s jurisdiction, for which IOM makes an annual contribution to this agenda.

    IOM carries out its extensive political and legislative independence through parliament, the Tynwald, which is the world’s oldest legislative body.

    Types of companies:

    • Established under the Companies Acts 1931- 2004

    Companies may be of the following types:

    • Joint-stock company
    • Limited liability company
    • Limited liability company with registered capital
    • A company with registered capital with unlimited liability

     

    All companies are identified as either private or public companies. Private companies are not authorized to offer shares or securities to the general public and are not obliged to file audited annual accounts to the commercial register.

    Companies based under the Limited Liability Company (LLC) Act 1996

    IOM has adopted this law from the legislation in Wyoming. LLC is a hybrid structure consisting of company and partnership attributes. Further specific specifications are available on request.

     

    Taxes

    Previously, IOM has been using a tax system for income tax based on non-resident tax status, tax exemption or international tax status. To comply with EU and OECD commitments, the IOM adopted a strategy that changed the corporate tax system and removed these so-called “harmful tax practices”.

    From April 6, 2006, the corporate income tax rate is 0%. The income tax rate for companies operating in the banking and real estate business is 10%. Every company is required to pay an annual fee of £ 250.

    Income of non-residents from companies taxed at 0% is subject to a 0% withholding tax.

     

    VAT registration and intra-EU trade

    Although IOM is not a member of the EU, it has the clear advantage of being part of the EU customs territory. A company may be registered with VAT on IOM if it has a place of business there. Therefore, it is possible for both foreign and IOM companies to obtain benefits from 0% corporate tax as well as VAT registration for intra-EU trade.

     

    Establishment of the company on IOM

    • We will find the availability of your preferred company name and book it.
    • We will prepare and complete all necessary documentation to set up the company.
    • We will immediately send you originals of corporate documents.

     

    Basic fees for setting up a company (one-time)EUR
    Setting up fee
    (includes costs, filing fee and registered capital charge)
    2,620
    Corporate Structuring and Due Diligence
    (preparation of corporate documentation and provision of a company seal)
    500
    Processing an application to open a corporate bank account at IOM550
    Institutional fees 450
    Annual fee for filing a tax return from 100
    FIRST YEAR TOTAL: 4,220

     

    ANNUAL FEESEUR
    Corporate Domicil
    (provision of registered office and eventually registered agent, preparation and administration of statutory records, deadlines, filing of tax returns and any other tax / license statements)
    2,500
    Institutional fees 450
    Fee for filing a tax return 100

     

    OTHER SERVICESEUR
    Professional Directors, Nominee Service to Authorized Persons to Sign Bank Account Request, Company Secretary and Nominee Shareholder1,000
    VAT registration550
    VAT administration (accounting, banking) 200 / quarter
    Accounting Preparation Measures 300
    Trust and private foundations
    Preparation of founding deeds of trust / private foundation and transfer of assets
    from 1,250
    Annual Trust Charges from 1,600

    Note: All nominee directors at IOM must undergo a review by the Government Financial Supervision Commission before appointment. The Commission monitors criminal record, professional qualifications, knowledge of company law, work experience and financial situation.

    To ensure compliance with local law, in IOM as well as in other jurisdictions, on behalf of a company must act licensed agent and a local director must be appointed. This is in line with the Corporate Service Providers Act 2000.

     

    The most common use of IOM offshore companies:

    • holding an investment, such as a portfolio, UK commercial real estate, and other corporate interests – these activities are not taxed;
    • simplified intra-EU trade due to zero income tax rate and the possibility to obtain a VAT number for intra-EU trade;
    • possession of intellectual property rights since IOM is a signatory to the Paris Convention on Patents and Trademarks.

     

    Specifics of establishing offshore companies in the Isle of Man

    Establishment of the company in 3 – 5 days after the approval of the company name by the Commercial Register. The name can end only with Limited or Ltd, Public Limited Company or PLC.

    An offshore company can only be established with one shareholder who can have a single share of zero. One director is allowed to be appointed and this may not be an IOM resident.

     

    Accounting and support for offshore companies at IOM

    Offshore company is required to file an annual tax returns. Their preparation is the responsibility of the managing director and the registration agent is responsible for filing the tax return.

    Offshore accounting does not have to be made, but accounting records must be kept at the IOM registration agent’s address.

    Offshore companies may not have audited accounts if they meet two of the following three criteria:

    • their annual turnover is £ 5.6 million or less;
    • their balance sheet total is GBP 2.8 million or less;
    • the average number of employees is 50 or less.

    Every offshore tax return must be made and filed with the Isle of Man Treasury. All IOM companies are treated as residents in this sense. Residents (companies) are taxed at 0%. Revenue from land and real estate income on IOM is taxed at 10%.

Contact
Tetragrammaton a.s.

Žitná 562/10
120 00 Praha 2 – Nové Město

+420 777 025 554
+420 777 775 524

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Agreement on Processing of Personal Data CZ / EN

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