Havens not phased by Gibraltar tax hike

Gibraltar confirms the abolition of the tax exempt regime

Low-tax jurisdictions have no plans to follow Gibraltar’s lead and introduce a standard 10% rate of corporate tax for both domestic and multinational companies.

Government officials in Gibraltar have confirmed the abolition of the tax exempt regime which currently means many multinationals attract a corporate tax rate of 0%.

Malcolm Couch, head of income tax division on the Isle of Man, said the jurisdiction’s tiered corporate tax system will remain. The Isle of Man has a standard rate of corporate tax of 0% and a higher rate of 10% which applies to the income of licensed banks. Couch said while tax is a factor in investment decisions, ‘it is one of many that need to be considered and certainly isn’t the principal one’.

Geoff Cook, CEO of Jersey Finance, said there are no plans to change the corporate tax structure, but fiscal policy ‘is kept under review.’

Gibraltar’s chief minister Peter Caruana said companies could ‘easily go to Jersey, Guernsey, the Isle of Man, but they’re not… they’re not here just for the difference between 0% and 10% tax’.