Gibraltar is an established, OECD white-listed jurisdiction that offers an attractive tax regime to companies and their employees. Both benefit from:
- 10% Corporation Tax
- 0% VAT
- 0% Capital Gains Tax
- 0% Wealth Tax
- 0% Inheritance Tax
On 1 January 2011 a new rate of only 10% was applied to all companies except energy and utility providers. A start up rate of 10% applies to all businesses established in Gibraltar after the 1st July 2009. Tax is assessed on an actual year basis.
Capital Gains Tax
There is no Capital Gains tax in Gibraltar.
Double Taxation Relief A:
Gibraltar resident who is in receipt of income which is liable to tax in Gibraltar that is derived from and has already suffered tax in any other jurisdiction, shall be entitled to double taxation relief in Gibraltar in respect of that income of an amount equal to the tax already deducted or the Gibraltar tax, whichever is the less.
Qualifying (Category 2) Individual:
A Qualifying (Category 2) Individual is an individual who for the year of assessment:
- Has available to him for his exclusive use approved residential accommodation in Gibraltar for the whole of the year of assessment.
- Is not resident in Gibraltar and has not been in the previous five years;
- Has applied to the Finance Centre Director and has been issued with a certificate qualifying him as a Category 2 individual.
- An individual who has been issued with a Category 2 Individual certificate shall be liable to income tax on the first £ 80,000 of assessable income only and the amount of tax due and payable in any year of assessment shall be not less than £22,000.
High Executive Possessing Specialist Skills:
Individual The rules and conditions of a High Executive Possessing Specialist Skills Individual are similar to those for a Qualifying (Category 3) and (Category 4) Individual. However, in this case the employer must satisfy the Finance Centre Director that the appointment of this High Executive Possessing Specialist Skills Individual will promote and sustain economic activity of particular economic value to Gibraltar and the Individual will earn more than £120,000.
A High Executive Possessing Specialist Skills Individual shall be charged to tax limited to the first £120,000 of his assessable income, under the Gross Income Based System.