The Isle of Man has announced a move to mitigate some of the increased costs that gaming operators will see due to the UK Point of Consumption Tax, allowing gaming operators to claim Double Duty Relief.
The move was announced by the Isle's Treasury to give operators a break, as gaming companies will have to pay extra taxes on any gaming services that are conducted with UK citizens. There are currently 56 gaming operators licensed on the Isle, making up 13% of the island's GDP.
Commenting on the relief measure Isle of Man Department of Economic Development e-Gaming sector CEO Peter Greenhill said, “We recognize 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."
“In addition, the Isle of Man’s positive relationship with the UK’s HM Revenue and Customs means that our operators will not have to appoint a fiscal representative in the UK, thereby saving them substantial costs."
“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.”