The Isle of Man government has taken steps to offset the impact of the UK’s new point of consumption tax by allowing its licensees to claim double duty relief on fees that would otherwise have been paid to the jurisdiction’s treasury.
Operators will be allowed to claim back money that would have been paid to the Isle of Man treasury as gambling duty for UK operations before the introduction of the 15 per cent tax on gross profit, which came into force on December 1st.
The double duty relief has been introduced in a bid to aid companies that would struggle with the financial impact of the new UK tax, and to ensure that the Isle of Man remains an attractive place to base an iGaming business.
Peter Greenhill, chief executive for e-Gaming development at the Isle of Man Department of Economic Development, said the government recognised the burden that the new UK tax would put on its licensees. As a result, he said, it had decided to introduce the measure despite not being legally bound to offer such relief.
“In addition, the Isle of Man’s positive relationship with the United Kingdom’s HM Revenue and Customs means that our operators will not have to appoint a fiscal representative in the United Kingdom, thereby saving them substantial costs,” Greenhill explained.
Online gambling currently represents 13 per cent of the Isle of Man’s economy, with 56 operators licensed there.