ECJ greenlights 15% corporate tax rate in Gibraltar
European Court of Justice reverses European Commission’s ruling that Gibraltar's proposed corporate tax reform constituted unlawful state aid
The European court of Justice has allowed Gibraltar to levy an effective
corporate tax rate of only 15% of profits on offshore companies.
The decision reverses that of the European Commision which said back in 2004
that the corporate tax reform constituted unlawful state aid.
The ECJ said the commission had gone beyond the limits of its review by
deciding that Gibraltar was a ‘region’ of the UK and had no powers to set its
own tax regime.
Welcoming the ruling, the foreign office said the judgment made it
‘abundantly clear’ that Gibraltar was fiscally autonomous from the UK and had
full competence for its domestic economic affairs,
the
Guardian said.
‘This decision reflects the position under Gibraltar’s 2006 constitution and
the modern nature of the relationship with the UK,’ a spokesperson told the
publication.