Incentives for Industry
It is the policy of the Isle of Man Government to promote the continuing growth and diversification of the industrial sector and export business in order to increase its contribution to national income and extend the range of employment and income earning opportunities accessible to Isle of Man residents.
The scheme adopted by the government is based upon a recognition that, even for potentially successful investments, the first few years of any new project can be the most difficult and can generate strains on a company's liquidity. This is why the government offers cash grants towards investment in fixed assets and substantial loans at modest rates of interest towards investment in working capital.
Financial aids are available to established Island concerns and to incoming enterprises.
The main criteria governing eligibility are:
- That the development shall not diminish the existing amenities of the Isle of Man and the excellence of the scenic environment.
- That the activities of the enterprise will create a high added value per employee.
- That the project forecasts will show a good level of profitability and a good return on the capital investment
Capital Grants
40% of costs of new buildings, building improvements, new plant and machinery.
Operating Costs
- First Year Expenses
40% of non-recurring costs, associated with the establishment of a project such as professional fees for the preparation of a business plan.
- Training Costs
50% of special training costs incurred by employers operating an approved training scheme.
- Marketing Costs
40% of costs of specific new marketing ventures.
- Energy Conservation
40% of investments designed to conserve energy and reduce costs.
- Micro-processing Technology
40% of investments designed to conserve energy.
- Quality Assurance
40% of costs of employing consultants to advise on methods of applying micro-processing technology to manufacturing process.
- Quality Assurance
40% of costs of recognised costs of pursuing quality assurance standards such as BS5750.
Loans
50% of working capital requirements at modest interest rates with deferment of commencement of repayment for two years.
Profits Taxation
Income tax rate is 20% on undistributed company profits. 100% first year capital allowances are available on new buildings, improvements to buildings and plant and machinery.
Rent Reduction
Should a company with an approved project wish to rent a new factory from a private developer, rather than build its own with grant assistance, the rent may be reduced to reflect the value of the grant forgone.
Tax Holidays
Companies may apply for the granting of a tax-free period of five years as an alternative to the above package of grants and loans. During this period the whole or part of the profits or income of a company may be exempted from liability to income tax.
Issues & Perspectives
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Starting A Business?
Considering starting a business on the Isle of Man? Then visit our section on Producing a Business Plan.