The $100m cost base reduction per orbital filing (via the Isle of Man) is achieved from the combination of:
- a corporate tax rate of 0% payable on profits generated by the Isle of Man orbital slot ownership entity
- no insurance premium tax, which at 6% in the UK, is a considerable saving, given the size of insurance policies on satellite launches.
Also you should know:
- The United States treats the Isle of Man as being British for ITAR purposes
- The Isle of Man offers access to launch licenses in conjunction with the UK Space Agency
- The Isle of Man offers access to orbital filing slots and radio frequencies via Ofcom and the International Telecommunications Union
- The corporate tax rate of 0% also provides the opportunity for significant savings by structuring the operations of group holding companies or subsidiaries in the Isle of Man or by establishing R&D or high tech manufacturing centres on the Island
- The Isle of Man Government offers financial incentives and grant aid of up to 40% of capital expenditure for businesses which establish on the Island and create new jobs on the Island
- The Isle of Man is already home to the likes of SES, Inmarsat, Telesat, Avanti, the Space Data Association, the Satellite Interference Group and the International Institute of Space Commerce
- Currently, 34 of the world’s 50 satellite companies are represented on the island and, 11 satellites in orbit are owned by Isle of Man based businesses.
And The Isle of Man:
- is a well regulated, commercially oriented jurisdiction which is AAA rated by Standard & Poor’s and AA+ rated by Moody’s and has been “White Listed” by the UK, OECD and the G20
- has an established aerospace cluster comprising space, aerospace and high tech industries
- an established and successful captive insurance market
- an established and highly regarded professional services network
- a ‘pro-space’ government with a political commitment to develop space commerce
- world class telecommunications infrastructure
The Isle of Man’s position is validated by:
- September 2010 UK Economic Policy Centre Report, which was commissioned to ‘take a hard look at UK Space Policy’, quotes one of its recommendations as “The UK should seek to learn and copy from the Isle of Man’s favourable operating environment for space commerce”.
- The influential February 2011 Futron Report titled ‘Innovative Strategies for Space Competitiveness: Assessing the Isle of Man’s Space Policy and Results’ (http://www.futron.com/resources.xml) stated that the Isle of Man had developed a unique governmental approach to space, focused on economics tied to developing private sector financial, regulatory, legal and administrative services that supported international aerospace companies. The Report also confirmed “The Isle of Man’s unique approach to space activity allows it to punch above its weight in terms of global visibility in the space industry.” and also “[We] imagine other nations and jurisdictions will look to the Isle to replicate its success”.