Isle of Man E-Business Brochure

The advantages of locating your

e-business in the Isle of Man Getting to the Isle of Man...

...just couldn't be easier. By air, the Island

is served by four London airports, namely

Gatwick, City, Stanstead and Luton, with

the journey time being just one hour. Statement from

Other major interlining airports with

connections to the Isle of Man include

the Treasury Minister

Manchester, Birmingham, Glasgow and

Dublin. There are other airports in the

British Isles with direct flight connections

to the Island, these include Belfast,

The last 12 months has been an important time for the Newcastle, Leeds/Bradford, Bristol,

development of e-business on the Isle of Man. Additional tax Southampton, Blackpool and Liverpool.

incentives have been introduced and developments made to the By sea, there are sailings from Heysham, infrastructure, all aimed at improving still further the Island's

Liverpool, Dublin and Belfast. The position as a centre of excellence for e-business.  

services are operated by the Isle of Man

Steam Packet Company who have a The Isle of Man was an early recogniser of the importance of  mixture of conventional and fast craft e-business and has worked hard to implement strategies and vessels. The main United Kingdom freight policies to support business in this sector. In March this year, we port for the Island is Heysham. accelerated the zero rate of corporate tax for the e-gaming sector

which had originally been due for introduction in April 2006. The arrival of the zero rate for e-gaming 12 months early provides another important incentive for businesses to relocate to the

Isle of Man.

The Island's telecommunications infrastructure is first class due to continued investment to the tune of £50 million over the last five years alone. Fast, reliable and resilient communications are a vital asset for any e-business and we compare very favourably with the best in the world. The Isle of Man was only the second jurisdiction in the world and the first in Europe to offer a UMTS 3G mobile telephone service. Later this year, we will be the first in Europe to launch the advanced of HSDPA "super fast" 3G technology.

The Island remains fully committed to providing a well regulated and commercially attractive economy for the benefit of international e-businesses and it is clear we have managed to stay at the cutting edge of international developments in recent years. We believe in encouraging enterprise in order to generate both jobs and income for our community. Our unique blend of being a supportive and committed Government, our world class telecoms, international financial services industry, low taxes, generous grants, political stability and enviable international reputation, all combine to ensure that the Island is at the forefront of international e-business jurisdictions. It is our ambition to not only maintain this position but to also improve on it in the years ahead.

Business friendly low rates of taxation and a state of the art telecoms infrastructure may attract businesses to the Island but the quality of life keeps them here. The Quality of Life Survey conducted by MORI showed there is a 93% satisfaction with the quality of life on the Island, significantly higher than that found in other jurisdictions. More than 90% of residents feel safe on the Island and two out of three are satisfied with how the Island is policed. Over 60% of residents also believe the Island's economic prospects have improved over the last five years.

Hon Allan Bell, MHK, Treasury Minister

e-business in the Isle of Man

1

Why the Isle of Man?

The Isle of Man offers many advantages as a location for e-business – each valuable in its own right. Taken together, they provide a distinctive package for companies to build and grow a successful business.

Clear and unequivocal Government support for e-business  

A world class telecommunications infrastructure, with  highly competitive telecoms costs on the Island

One of the most attractive tax packages available  to businesses

0% corporate tax for trading companies is to be introduced from April 2006

No capital gains or inheritance taxes and import taxes are favourably comparable with any location

The world's oldest continuous and democratic Parliament

– Tynwald. The non-party political system means once a policy commitment is made, we have a reputation for seeing it through

The Island's independence

and size means the needs of businesses are listened to and reacted to quickly,

providing advantages that

help them succeed in

competitive markets

AAA' credit rating from Standard & Poor's and Moody's

Offers a range of financial and tax benefits to qualifying companies, providing a business environment to nurture and support companies that are starting out

A highly IT-literate workforce, over 90% of school leavers have a recognised IT qualification

Excellent support services

Neither part of the UK nor a member of the EU, allowing a high degree of independence in policy and legislation

However, there is a special relationship with the EU which provides freedom of access for the sale of goods to

the EU, and the relationship with the UK provides administrative simplicity for Isle of Man based businesses selling into the UK and EU

Legislation supporting e-business and related matters

The Island's independence and size means the needs of businesses are listened to and reacted to quickly, providing advantages that help them succeed in competitive markets

e-business

We are keen to attract

businesses that will thrive in

the environment offered

Target Industries

We are keen to attract businesses that will thrive in the environment offered, which tend to fall into one of the categories below. However, this does not mean all other business areas are

eliminated, all proposals are welcome.

Business continuity providers Digital rights management and distribution for

IT hosting and security management services digitally-delivered products such as music and video

Online gaming Multimedia technology companies

Interactive entertainment developers and publishers Travel, reservations and leisure-related services

Software and software product development, R&D, e-learning, training and similar services

distribution and support   Supply chain management and e-trading communities

Electronic publishing companies, research companies, Electronic billing, presentation and payment systems information and database providers, data warehouses

and knowledge based companies

e-business

We have no capital

gains or inheritance

taxes, and our

personal tax rates are

Taxation amongst the lowest in

The Island has a highly competitive taxation financial institutions. The Island's commitment to the zero policy, a key benefit when establishing a rate is clearly evidenced by the advancing of the zero rate to

April 2005 for six business activities, e-gaming, fishing, business. Further developments over the last six agriculture, tourist accommodation, film and TV production

months, such as zero rate tax for six business and manufacturing. These activities add to the existing zero

rate for fund management, insurance, and aircraft and

sectors clearly demonstrates our commitment to shipping operations.

companies on and moving to the Island. We have no capital gains or inheritance taxes, and our

personal tax rates are amongst the lowest in the offshore

The Island is a jurisdiction of trust and probity, with world. Our import duties also compare favourably with other regulatory controls that are highly regarded and a prestigious locations.

AAA rating from Standard and Poor's. Although an offshore

Although not a member of the EU or part of the UK, we have jurisdiction, the Isle of Man has been careful to ensure that it

a common purse' for VAT with the UK. This, coupled with our meets the strict criteria of the OECD and the EU in avoiding

special relationship with the EU, gives us access to EU

being included in the lists of harmful' tax regimes.

markets for goods and provides Island-based companies with We offer one of the most attractive and progressive taxation simplicity of VAT administration for European markets that policies available. Our corporate tax levels of 10% for trading other offshore jurisdictions cannot match.

income and 18% for investment income are currently

And, just as importantly, we have a unique, non-party form of amongst the lowest anywhere. We have committed to

Government which helps us avoid the sharp policy reversals delivering a zero rate of corporate tax by April 2006, other

that characterise many jurisdictions.

than for a core group of defined activities e.g. licensed

e-business

The Island has advanced

fixed and mobile networks

including fibre optic and fixed

e-business wireless backbone networks

connecting all the main Telecoms

e-business is critically dependent on a

cost-effective and reliable telecommunications

infrastructure. The Island has a world-class

telecommunications infrastructure based on two

fibre optic cable self-healing rings, both of which

are operated by global telecoms operators, BT

and Cable & Wireless. The rings connect the

Island to the north of England and Northern

Ireland, and provide effectively unlimited capacity

for current and future e-business requirements both worlds - good but realistic pricing coupled with quality of including the activities of "bandwidth intensive" service and real investment for the future.

businesses such as e-gaming.  The Island's largest telecoms company by market share is

Manx Telecom, a subsidiary of O2, a pan-European telecoms company listed on the London Stock Exchange. Manx

The total available off-island capacity amounts to 1,000Gbps Telecom, which operates fixed and mobile networks across which is equivalent to around 15 million simultaneous voice the Island, and is currently investing in HSDPA mobile

calls over the public telephone network or 1.5 million users broadband technology, was awarded a new 15 year licence on simultaneously downloading information direct from the the Island in January 2004.

internet at the standard ADSL data rate of 512kb/s.

In addition, Domicilium, the Island's longest established

The Island has advanced fixed and mobile networks including Internet Service Provider operates an independent high

fibre optic and fixed wireless backbone networks connecting capacity switched MPLS communications backbone which

all the main towns and business parks. It has near universal extends throughout the Island and into the heart of the broadband ADSL coverage, wireless broadband coverage and European communications hub in London. Domicilium was

a modern mobile network which is currently being upgraded recently awarded an exclusive 15 year licence to provide fixed to provide mobile broadband services using an advanced wireless broadband services to the Island using the 3.4GHz superfast' 3G HSDPA technology. frequency band. Cable & Wireless also has a license to

Unlike other island-based jurisdictions, we believe that in  provide services on the Island and there are a number of

a smaller community, there is a real trade-off to be made other telecoms operators, service providers and IT companies between competition and investment. It ensures the best of competing in the Island's telecoms and IT markets.

Financial Assistance

The Department of Trade and Industry (DTI) has seen in excess of 100 million US dollars successfully invested in commercial projects over the past ten years. Its investment focus is now

set to encourage all aspects of e-business.

The DTI's Financial Assistance Scheme can offer a generous package of support to qualifying businesses (excluding financial services).

40% plant and machinery grants, to include all hardware, software and maintenance contracts

40% building grants for new builds, extensions or modifications to existing buildings or for rents payable

40% revenue grants encompassing expenditure incurred in relocating a business or key individuals, consultancy, marketing, quality and environmental standards

50% training grants

Tax incentives may be applied for as an alternative to the above grants

All capital grants are ignored for the purposes of calculating capital allowances, a 100% capital allowance combined with maximum capital grant support can give an effective rate of support of 60% of the costs of  capital assets

The DTI has the ability to act as an equity investor and  a guarantor in specific qualifying circumstances

The above incentives apply to existing and new ventures

and can be applied for on an annual basis

The DTI's scheme can accommodate capital assets

   obtained on lease/hire purchase finance

e-business

A Listening Government

The Isle of Man Government's role is to create the right environment for business development. The Island has the advantage of being a small community – around 75,000 at present. Our size allows us to react swiftly and effectively to events in world markets.

We believe fundamentally in a close Government and private working partnership. Access to senior Government officers and ministers is easier than in larger jurisdictions and is considered the norm'. We offer an open, listening Government which believes absolutely in its role of making  its businesses as competitive and successful as they can be.

Our size allows us to react swiftly and effectively to events in world markets

e-business

In 2004, over 90% of school leavers had a recognised IT qualification, and we expect to improve that in successive years

Workforce

The Isle of Man offers a highly IT-literate

workforce. We have invested heavily in ICT

developments internationally". e-business education, which a review by UK OFSTED

inspectors described as "at the leading edge of

The programme is driven by educationalists themselves. It provides wireless laptops for every teacher, exceptionally high PC-to student ratios and its own dedicated wireless broadband backbone connecting every school. Facilities are provided to allow the efficient and effective management of schools as well as the collaborative development and delivery of curricular material using advanced ICT techniques and multimedia. We believe we have succeeded in making ICT a fundamental part of the education process in a programme which is the envy of our neighbours.

In 2004, over 90% of school leavers had a recognised IT qualification, and we expect to improve that in successive years. The latent workforce potential of this is considerable.

The workforce in employment is also highly ICT literate. Much of our workforce is involved directly and indirectly in the finance, insurance and support services industries, all

of which have been rapid adopters of ICT and e-business. We also have strong software support, consultancy and IT services communities.

The advantages of locating your e-business in the Isle of Man

JUPITER is bringing about a fundamental change in the way the Isle of Man Government uses

e-Government Information Technology

to modernise the business Like all Governments, e-business stands for JUPITER is bringing about a fundamental change in the way of Government itself

more than just electronic access to Government – the Isle of Man Government uses Information Technology to

modernise the business of Government itself. It is achieving

it brings us the opportunity to improve the joined up working between different parts of Government

efficiency and effectiveness of the services we alongside providing new, efficient and convenient ways for

citizens and businesses to communicate with Government

deliver to the community and to business. We and to receive its services.

have embarked on an ambitious business and

technology change programme, called JUPITER Mevaakluinagti nGgo vc eornnvmeneinetn at nadccseesrsv itcoe  ss emrvoicree sa cthcreosusgibhl ee x–tended

(Joined Up Information for The Electronic hours of working in one stop shops, customer service

Resident), which will progressively e-enable centres, kiosks, etc

Government, allowing resources to be focused Building services around citizen's choice – offering access

increasingly on front line service delivery. taos "wjoeilnle ads- u"lpif"es eevrevnictess" that reflect customer preference

Ensuring electronic service delivery does not create a

digital divide – ensuring that all citizens have equal

access to services

Creating a "One Mann" service - sharing common

customer information between service areas, respecting

data protection, with the objective of seamless and

efficient public service delivery

Creating one distinct corporate image of the Isle of Man Government as a leader in the provision of public service through modern delivery channels

e-business