Gibraltar completes tax regime overhaul

The Gibraltar government has published a revamped Income Tax Act ending all
distinction between “onshore” and “offshore” business in efforts to evolve from
“tax haven” to “mainstream European financial services centre.”

The new act lays the foundations for the reduction of company tax in
Gibraltar from 22% to 10% as from 1 January 2011, to coincide with the
definitive abolition of the historical tax-exempt company regime, the Gibraltar
government said today.

“This legislation ends all distinction between ‘onshore’ and ‘offshore’
business,” the government added.

Gibraltar has now signed 18 tax information exchange agreements with other
jurisdictions and has others in the pipeline.

The offshore centre’s full integration in the EU and compliance with EU
financial services regulation, money laundering and co-operation rules,
alongside the new Tax Act completes Gibraltar’s 14-year transition from tax
haven to mainstream European financial services centre, the government added.

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