Online Gambling Still Thriving in Recession
The Isle of Man, an important online gambling center, reports that the industry is its fastest growing during these hard economic times.
Recent Poker reports that the business section of the Isle of Man Today newspaper reported this week that Internet gambling is the fastest growing sector of the Manx economy, bucking the economic slowdown trend with the prospect of new businesses and new jobs being created on the island over the next few years. More than 360 jobs have been created in the past three years, the newspaper reports, with some of the biggest names in the online gambling industry including Microgaming, PokerStars and Playtech setting up head offices.
Garth Kimber, head of e-gaming development at the Department of Trade and Industry, told IOM Today: "The Isle of Man continues to attract interest from a large number of companies looking to change to, or set up in, a new jurisdiction. "Not only do businesses already on the Island continue to recruit but new companies are applying for licences month by month.
The Isle of Man faces a problem that is completely contrary to what most nations are dealing with during this economic downturn. They have virtually zero unemployment.
The Isle of Man is a "low tax economy" with no capital gains tax, wealth tax, stamp duty or inheritance tax and a top rate of income tax of 18%. A "tax cap" is in force. The maximum amount of tax payable by an individual is £100,000 or £200,000 for couples if they choose to have their incomes jointly assessed. The £100,000 tax cap equates to an assessable income of approximately £570,000. Personal income is assessed and taxed on a total 'worldwide' income basis rather than a remittance basis. This means that all income earned throughout the world is assessable for Manx tax rather than only income earned in or brought into the Island.
The rate of corporation tax is 0% for almost all types of income, the only exceptions are that the profits of banks are taxed at 10%, as is rental (or other) income from land and buildings situated in the Isle of Man.
Jagajeet Chiba, Gambling911.com
