Following a recent visit to China by an Isle of Man delegation consisting of representatives of Government and the private sector, the Isle of Man Government is confident that the Isle of Man can continue to attract Chinese business and expand the working relationship between the two countries.
With the Tax Information Exchange Agreement between the Isle of Man and China coming into force from the beginning of 2012, the purpose of the trip was to demonstrate to Chinese businesses the benefit they could obtain through utilising the Isle of Man as an international business centre.
Tim Craine, the Business Development Agency Director for the Isle of Man Government's Department of Economic Development commented:
"it was encouraging that our propositions received such widespread interest and that there is a real interest in learning more about the Isle of Man and how we can add value to Chinese businesses in a number of key areas"
The Isle of Man has already established itself as a leading offshore jurisdiction to access London's capital markets, and is already home to a number of Chinese operating companies listed on the AIM market. The Isle of Man has also been accepted as an approved jurisdiction for the Hong Kong Stock Exchange, making it the ideal location for joint listed companies.
China is the world's biggest exporting economy and Europe imports over €200 billion worth of goods from China every year. The Isle of Man is in an excellent position to offer a unique service to Chinese businesses, boasting both a zero corporate tax rate and access to the European VAT network, Chinese businesses can employ Isle of Man companies as the perfect hub for trading with Europe. The Island also offers a streamlined Entry Processing Unit (EPU) under which the Isle of Man will be able to provide an electronic "single point of entry" for all customs and excise imports, no matter where, in the EU, the goods arrive.
As a leading jurisdiction for international wealth planning, and with the recent introduction of Foundations to the Isle of Man's wealth planning armoury, the Isle of Man can also offer great benefits for the growing number of high net worth individuals in China. This increasing demand from China for international tax planning solutions was demonstrated by the record attendances shown at the Society of Trust and Estate Practitioners conference held in Singapore in November 2011, attended by Annemarie Hughes, director and head of DQ's Trust and Private Client Department.
Annemarie Hughes commented:
"These are exciting times for the Isle of Man. Our growing relationship with China has opened the door to a vast number of potential new clients. DQ already boasts a number of Chinese clients, including the largest Chinese operating AIM listed company in the Isle of Man, and we look forward to offering our services to Chinese clients in the future, to help them take advantage of the great benefits the Isle of Man can offer."
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