Advantage 1 – Our New Basis of Taxation

02 Feb 2012

Under the New Act the standard rate of Company Tax will be set at 10% and this will apply to all income earned in and derived from Gibraltar. Together with the international tax information exchange agreements being entered into by the Government, Gibraltar’s full integration in the EU and compliance with EU financial services regulation, money laundering and co-operation rules, the new Tax Act completes Gibraltar’s transition from tax haven to mainstream European financial services centre.

Summary of the Key Changes:

  • Standard rate of Company tax reduced from 22% to 10%. However, utilities, and companies which take advantage of a dominant market position, will be subject to tax at the rate of 20%.
  • The territorial basis of taxation for Gibraltar companies is preserved and income accrued or derived outside Gibraltar by Gibraltar companies is not subject to Company Tax.
  • Interest income (other than trading interest) and royalties are not subject to tax.
  • Tax losses arising under the old Act can be carried forward and offset against profits assessable under the new Act.
  • Capital gains will continue to be excluded from taxable profit (capital gains remain free from taxation).
  • System of self-assessment for self-employed and companies introduced.
  • Companies and the self-employed to be taxed on a ‘current year’ basis and to make payments of tax on account during the year.

The opportunities available as a result of the above amendments are immeasurable for most individuals or corporate entities wishing to use Gibraltar as a base in which to trade out from, set-up a business, access highly reputable banks or in many other different types of scenarios.

For full information on how Gibro can assist you, contact:

Nicholas Wright, Private Client Director

+350 200 76222

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