Tax changes introduced by the Government in response to new international standards have been granted qualified status by the OECD.
Introduced in November 2024, the changes apply only to large Multinational Groups with annual consolidated revenues of €750m or more.
The Organization for Economic Co-operation and Development this week updated its Central Record of Legislation with Transitional Qualified Status confirming that the island’s Pillar Two Domestic Top-up Tax is a Qualified Domestic Minimum Top-up Tax with Safe Harbour Status.
Its Multinational Top-up Tax has also been confirmed as a Qualified Income Inclusion Rule.
Qualified Status
Treasury Minister Dr Alex Allinson MHK said: “This is an important step in our commitment to ensure that our Pillar Two tax regime complies with international tax standards and eases the administrative burden on affected groups as far as possible.
“The Treasury continues to monitor developments following the G7 statement on global minimum taxes on 28 June 2025, and will ensure that the Island remains competitive and attractive in terms of business growth, innovation and entrepreneurship.”
The Income Tax Division reminds in-scope Multinational Enterprise Groups of the requirement to register for Pillar Two tax in the Isle of Man.
Further information in relation to the Island’s position on Pillar 2 Global Minimum Tax, including registration requirements, is available here.
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