The Isle of Man has announced that it will be granting a bit of tax relief to operators serving the UK gaming market by allowing them to claim Double Duty Relief in order to avoid being double taxed on gaming operations.
The move is meant to ease the transition of gaming operators, who are now subject to taxation in the UK should they service punters there. The tax was looking to be costly for the Isle’s 56 gaming operators, who contribute 13% of the area’s GDP, so the Isle decided to help them out a bit with the Double Duty Relief.
Commenting on the matter Isle of Man Department of Economic Development, e-Gaming Division CEO Peter Greenhill said, “We recognise 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 license holders so that they can continue to run their operations from data centers 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.”
The Isle of Man is known for being one of the most reputable jurisdictions for online gambling in the world. It's where some of the biggest names have been based in the entire industry, and it's well-respected by everyone involved in the industry in any way. A recent report has shown that they have been growing quite a bit in this industry over the past year, and they generate a ton of revenues and jobs from it.
Competition With Insurance
One of the main problems facing the online gambling world is that there are no unified rules about what should and shouldn't be allowed. There are no standards of behavior or for licensing, and because different countries have different rules on taxation, it wouldn't necessarily be helpful if they did. It's been a long time coming for countries to start working together more on this issue because independent licensing and accrediting groups can only do so much.
The Isle of Man has been the home of Microgaming for well over a decade, and they have been growing for the nearly 20 years that they have been in operation. Along these lines, it's not all that surprising that they are needing to expand to even more office space soon. They're going to be doing so through the use of a skywalk that will connect the building they are currently in and the new building that will house some of their expanded offices.