Two tax agreements between the Isle of Man and Australia, originally concluded on 29th January 2009, have now come into force.

The Isle of Man ratified the agreements on 17th March 2009.  Now, the Australian High Commission in London has confirmed that Australia has completed its own ratification procedures; as a consequence, the agreements entered into force on 5th January 2010.

The two agreements are as follows: a tax information exchange agreement based on the Organisation for Economic Co-operation and Development(OECD) model; and an agreement for the allocation of taxing rights over certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments.

The series of tax co-operation agreements signed by the Isle of Man Government have helped to demonstrate the Island's commitment to international standards and to the global effort to establish a system based on co-operation between countries, transparency and effective exchange of information
in tax matters - all of which strengthen financial stability.

In April last year, the OECD acknowledged the Isle of Man's efforts by placing it on the 'White List' of countries which have substantially implemented internationally agreed tax standards.