Gibraltar tax system: audit, reporting and optimization of taxation of Gibraltar companies and individuals: VAT, income tax and capital gains

Basic taxes (briefly)

Personal tax 30%
Corporate tax (in detail) The rate for companies is 10%; utility companies and companies that abuse a dominant position are subject to taxation at 20%.
Capital gains tax. Details
VAT. Details
Other taxes
Government fee £75 annually
Stamp duty £10

International tax agreement

   
Australia, Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, Greece, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Portugal, Sweden, United Kingdom, United States.


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Taxation of individuals

Gibraltar income tax is payable on Income from activities and sources in Gibraltar. Persons who are permanent Residents of Gibraltar also pay tax on certain types of income from foreign sources.

The tax is paid in the lower of the two, calculated under the two alternative methods:

The following rates apply to income after certain exemptions and deductions have been applied The following progressive rates apply: 14% on the first 4,000 GBP, 17% on the For the next 12,000 GBP, 39% for the excess. No tax is payable on income up to. 11,450 GBP no tax is payable.

On gross income (without benefits but with certain deductions) The following progressive rates apply:

  • for income up to 25,000 GBP, 6% on the first 10,000 GBP, 20% on the next 7,000 GBP, 28% on the excess;
  • for income over 25,000 GBP, tax is calculated at seven different progressive rates (ranging from 5-28%).

Income tax

Companies pay tax on income generated Gibraltar.

The income tax rate is 10%.

Companies that provide utilities, companies, Energy supply companies and companies abusing a dominant position in the market, pay a tax rate of 20%. Telecommunications companies can apply a 10% rate to profits not from telecommunications activities.

Capital gains and dividends are not taxed tax.

Tax on capital gains

No.

CFC rules

Control of a foreign company arises when ownership of 50% or more of the capital, voting rights or rights to distributions of profits foreign company. If the CFC pays income tax at a rate of less than 50% tax that would be payable on such profits in Gibraltar, and the use of the foreign company is intended to evade tax, the undistributed profits of the CFC must be taxed with the shareholder company in Gibraltar.

Withholding tax on income

No withholding tax is levied in Gibraltar (except Except for payments to contractors in the construction business).

VAT/sales tax on goods and services

No.

Social contributions

Social contributions are paid by employees at the rate of 10% on of the amount of remuneration but not less than 6,05 GBP and not more than 32,25 GBP per week.

Employers pay social contributions at the rate of 20% on the amount of remuneration, but not less than 18.15 GBP and not more than 40.15 GBP per week.

Property taxes

Taxes are paid on commercial property at Different rates depending on the type of property.

Stamp duty

Stamp duty is levied on real estate transactions, located in Gibraltar with shares in companies with such real estate. The fee is calculated at different rates depending on the market value property.

Double taxation treaties

Gibraltar has entered into the following tax information exchange arrangements:

19 TIEAs: Australia, Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, Greece, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Portugal, Sweden, United Kingdom, United States.

Currency controls

In general, there are no restrictions on foreign exchange transactions

There are no restrictions on currency transactions in general.

    Taxes of Gibraltar

    Min. rate for corporate tax 10%
    Capital gains tax No
    VAT No
    Withholding tax No
    Exchange control No
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