The Isle of Man has offered Double Duty Relief to its 56 licensed gambling operators following the introduction of the UK’s Place of Consumption Tax.
The changes, which are effective immediately, allow companies to claim relief up to a monetary maximum equivalent to the amount of gambling duty that would have been paid to the Isle of Man Treasury on the same activity.
It is estimated that 13% of the Isle of Man’s economy is related to gambling.
Peter Greenhill, chief executive for e-Gaming development with the Isle of Man Department of Economic Development, said: “We recognise the burden that the new UK tax will place on our licensed operators and while we are not legally bound to offer this relief we have decided that this is the best approach.”
Earlier this year, the Isle of Man Treasury announced that an agreement had been reached with HM Revenue and Customs that Isle of Man-based companies would not be required to appoint a UK representative to account for any duties introduced by the Gambling Act 2014.
“This decision provides reassurance to Isle of Man licence holders so that they can continue to run their operations from data centres on the Isle of Man and base their decision making capabilities here as well so as to protect against any future claims under base erosion and profit shifting,” Greenhill said.
source : www.igamingbusiness.com