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Isle of Man - Netherlands Economic Agreements break new ground 12 October 2005 The Isle of Man has broken new ground by signing bilateral agreements with the Netherlands based on mutual economic benefit and co-operation. The deal - the first of its kind between a small international business centre and an OECD1 member – will support business opportunities between the two countries in such areas as international shipping and aviation. The agreements were signed in Douglas today (Wednesday, October 12, 2005) by the Dutch Deputy Finance Minister Joop Wijn and Isle of Man Treasury Minister Allan Bell MHK. The package of measures has been negotiated within the context of the OECD programme to develop a global network of tax co-operation and information exchange. Said Mr Bell: ‘This is an historic signing confirming the economic recognition of the Isle of Man by an important European state. It opens up international business opportunities and paves the way for similar agreements with other countries.’ The package includes: - A shipping and aircraft taxation agreement ensuring that a relevant business based in the Isle of Man will not be taxed in the Netherlands so long as it is conducting international trade.
- A ‘transfer pricing’ agreement; meaning that the Isle of Man and the Netherlands will work together to ensure certainty of treatment when companies having operations in the two territories move goods and services between them.
- An agreement that Manx subsidiaries of Dutch companies will not experience any tax issues as the Isle of Man moves to its ‘0/10’ company tax system in 2006.
- A commitment to work towards a full DTA (double taxation agreement) between the Isle of Man and the Netherlands. This will further support Manx-Dutch business relationships.
- A modern TIEA (tax information exchange agreement) based on the OECD model of exchange of information on request on a case by case basis.
1Organisation for Economic Co-operation and Development. 12th October 2005 More stories >>>
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