Isle of Man, the tax haven that boasts online gambling, is now keeping an eye on cannabis
The Isle of Man is located between the islands of Great Britain and Ireland. It is a dependency of the British Crown and, therefore, not part of the United Kingdom, although in practice it is that state that exercises its international representation and defence.
It previously belonged to Scotland and even Norway. This island is 22 kilometers wide and 52 kilometers long. 572 km², It is a member of the World Trade Organization and part of the OECD, although it considers it a tax haven, through its Global Forum on Transparency and Exchange of Information for Tax Purposes for Economic Co-operation and Development, it qualifies it. Is “Maximum in Compliance”,
The island is the second country after Austria to ratify it Multilateral agreement with OECD Implementing Base Erosion and Profit Shifting (BEPS) prevention measures. The International Monetary Fund, for its part, believes that the island’s protection against money laundering from criminal activities meet world standards, That means the island cooperates in the fight against international financial crime.
In the area of financial crime, the Division cooperates closely with the Financial Intelligence Unit (FIU). In any case, the Isle of Man’s tax haven status became widely contested after Paradise Papers case (Paradise Papers), a set of 13.4 million documents On investments in tax havens which was leaked on November 5, 2017. The names of more than 120,000 people and companies involved and the financial matters involved were revealed. They also had an impact on Queen Elizabeth II and United States Secretary of Commerce Wilbur Ross.
a prosperous economy
The truth is that the Isle of Man, with just over 84,000 inhabitants today Unemployment rate around 1%, It has one of the most prosperous economies in Europe and is continuously growing. Traditionally, the island i used to live by fishingBut thanks to this it started attracting companies low tax policy And its beneficial financial regulation.
He financial sector Is widely established and has been around for at least 15 years 37% of GDP of the island, similar to the percentage insurance sector, However this trend is changing and new businesses have emerged giving a new dimension to the Isle of Man.
Since then, man seems like a good place to start a business. No capital gains tax imposed, property, documentary legal acts, stamp duty or inheritance, and income tax has a maximum of 20%. Also there is one tax limit, The Isle of Man taxpayer has a tax payment threshold of £125,000, which can rise to £250,000 if it is a couple who decide to pay their taxes jointly.
Standard corporate tax rate for residents and non-residents is 0%Retail companies with profits over £500,000 and income Banking activities are taxed at 10%and rental income, at 20%.
new business
This low-tax economy, which has traditionally promoted financial activity, has also given rise to new businesses. The Isle of Man has served as a base for almost two decades, in addition to offshore banking. Information and Communication Technology Companiesbut also for operators and developers online gamblingSuch as the company PokerStars, which is headquartered in the island’s capital Douglas, and holds an Isle of Man Gambling Supervision Commission license.
Insurance also plays an important role in the island’s economy, but e-gaming sector, although it already has a history. It began to be settled about two decades ago and currently represents 17% of GNPahead of ICT and banking, which account for 9%.
He Tourism, which was an important source of income, has reduced its activity to 0.3%, In fact, the tourism and hotel industries, as well as fishing and agriculture, were both pillars of the Isle of Man economy before the introduction of eGaming in the British Dependencies. Film industry also.
E-gaming and ICT contribute the most to GNP, although local government maintains incentive policyIn addition to high-tech companies, financial institutions settle on the island. E-gaming did not take a back seat in Maine even after the 2015/16 financial year when the Isle of Man’s GDP declined First decline after 32 years of continuous growthWhich was due to the decline in e-gaming income.
twelve strategic areas
The Isle of Man’s economic development strategy has been set out Vision2020, an initiative that aims to increase the economically active population and offers this location as a “Business Island”, “Technology Island”, “Manufacturing Center of Excellence”, “Offshore Energy Centre”, “Destination Island” and a consumption location of “distinctive local foods and beverages” . The government of the island has also published this National Economic Strategies for Emerging Regions Such as aerospace, biomedicine, digital media and ICT.
It is the Isle of Man Department of Enterprise that manages the economy, which is divided twelve strategic areas, in which insurance and e-gaming are at the forefront. In terms of number of employees, the most prominent sectors are medical and healthcare, financial and business services, construction, retail trade, and public administration. The manufacturing industry focuses on the aerospace and food and beverage industries, which employ approximately 2,000 workers and contribute approximately 5% of GDP,
between Largest employer on the island The Stars Group, Microgaming, Newfield, Playtech are some of the online gambling (eGaming) companies that are represented. Manx eGaming Association Mega, The aforementioned PokerStars, one of the world’s largest online poker portals, was founded in 2005 in Maine, Relocating its headquarters from Costa Rica, A year later, RNG Gaming, a developer of P2P tournament gaming software, also moved its offices to the island, as did Gate21, a multiplayer blackjack site.
Cannabis as a bet for the future
Although the Isle of Man enjoys a consolidated and healthy economy, its government never stops taking new initiatives to continue expanding the market and now they have set their sights on Medical cannabis sector as new source of income,
man wants you At least 10 companies will be established in this sector by the end of 2025 On the island, whose activity includes the cultivation and export of medicinal cannabis derivatives. This is part of the diversification of the economy that the local government intends to do, which it believes will boost the industry. The island’s GDP could double Create another 5,000 jobs in 2032.
Although the economy of the Isle of Man is a consolidated and healthy one, its government continues to contribute new initiative To continue expanding the market and now they have set their sights on the medical cannabis sector. The island’s government intends to increase the current 84,000 residents to more than 100,000 in 15 years and “Cannabis is suitable” To ensure “high-value exports”, says Tim Johnston, the UK’s trade minister.
Isle of Man andhas granted the first license For this purpose. He did this to the company in 2022 Growlab Organics And would create a new body to streamline the granting of licenses, as they are currently granted by the gaming regulatory body and are inconsistent.
medicinal products derived from hemp Legalized in the UK in 2018, after similar measures were approved by some countries in Europe, Canada and several states in the United States. Who are these products primarily for? reduce chronic pain And the new industry promises to lighten the United Kingdom’s spending, dedicated to £1.5 billion every year Treating health problems with cannabis derivatives.
Unique flag of the Isle of Man
Apart from the economy, the Isle of Man also has other things that attract attention, such as its flag. We will not get British flags as official symbols, not even in its traditional international motorcycle events, which attract thousands of fans, because the island does not belong to the United Kingdom. Instead, the local flag promises to leave no one indifferent.
It was first used in the 14th century and consists of, on a red background, three legs that run Clockwise and which are bent at the knee and joined at the thigh. known as flag three legs of man (The Three Legs of Man), while the island’s motto, in Latin, is “Quocunque Jesseris Stabit”: “No matter how you throw it it will stand.”
teaches him represents the independence of the island and resistance to maxases. The symbol also appears on the island’s shield, along with the national motto, a peregrine falcon on the left and a crow on the right.
The origin of the human flag is based on a legend which relates to Lord Mannaman prevented the island from being attacked Changed its body, which now had three legs. He then rolled down the hill to defeat the invaders. Another version goes further and says that Mannaman set his feet on fire and slid down the hill at full speed.
keep three legs like this may remind of swastika, and in fact it is inspired by it, as it takes as reference the Sicilian symbol, which has three bare legs surrounding the head of Medusa. In both cases what is depicted is the Sun.
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