Treasury publishes 2024-26 Tax Strategy

Raising enough tax to meet Island's needs and complying with international standards among priorities

Ensuring enough tax is raised to meet the Island's needs, having a fair and equitable tax system and complying with international tax standards.

Those are the three main aims identified by Treasury in its 2024-26 tax strategy.

As well as the three strategic objectives, the document sets out seven priority actions for the next two years.

They include implementing a minimum effective tax rate of 15% for multinational enterprises, addressing fairness in relation to National Insurance and future incentives to promote productivity and increase the economically active population.

The review, which is the first since 2016, says Treasury will not introduce new taxes on capital or wealth, but will investigate ways to broaden the tax base.

It also states Treasury will work on a new levy on income to provide ring fenced revenues for the health service, with a view to completing the legislation by December this year, and applying it for the 2025-26 financial year.

A consultation on incentives to promote growth of the economically active population is scheduled for winter 2024-25, with the political decisions due to be set out in next year's budget.

The strategy will also retain the existing personal income tax system, minimise the need for increases to personal taxation and monitor the benefits of the tax cap.

The document will be laid before Tynwald next month, when Treasury Minister Alex Allinson will ask the court to back the inclusion of the priority actions within the department's annual plan.