Tax

The cornerstone of Gibraltar's attraction as an offshore jurisdiction is a fully integrated Member of the European Union hence with the consequential regulatory standards that apply to Member States. In addition, the Act of Accession exempts Gibraltar from the Common Customs Tariff, Value Added Tax and Common Agricultural Policy. There is also no capital gains tax, inheritance tax, wealth tax or estate duty in Gibraltar.

Gibraltar companies prove increasingly popular not least to form part of a financing structures of major international restructuring within a group.

Gibraltar previously unconditionally provided for tax exempt companies whereby other than a nominal annual payment to the Government of Gibraltar, there would be no liability to Gibraltar income or corporation taxes.
The Gibraltar corporate tax regime is currently being reformed to ensure compliance with EU requirements, and interim measures, have successfully been negotiated by the Gibraltar Government. In essence, the tax exempt company is to be phased out by 2010 and provided certain conditions are satisfied existing exempt companies are hence able to continue to benefit from their tax exempt status. The Government of Gibraltar is currently awaiting a ruling from EU with regards their rejection of Government's proposed reforms of the corporate tax regime based on a capped business property occupation tax and a company payroll tax on the grounds of material and regional selectivity.