Corporate Tax

Implementation notices concerning adjustments to the Gibraltar corporate tax fee.

The budget measures announced by the UK Government of Gibraltar on July 20, 2021, included an increase in the corporate tax rate from 10% to 12.5%, while still taking into account Gibraltar’s largely territorial tax base, whereby only income was generated and / or originated in Gibraltar or as ( such as royalty income or net intra-group interest income that meets or exceeds the threshold of £ 100,000 per annum).

This new rate was expected to apply to financial periods beginning after July 20, 2021, but the Gibraltar Income Tax Commissioner clarified yesterday that:

“The increase in the corporate income tax rate to 12.5% ​​applies from the 1st.”

For example, for a company with taxable profits in a financial year that extends through July 31 and the rest of the year, corporate income tax of 10% is levied for the months up to and including July 31, 2021, with the remaining months of the accounting period being subject the rate of 12.5%.

Please do not hesitate to contact us if this is helpful to discuss further information.

1098. Mr. Spokesman, what is clear, however, is that the world will likely soon move to a minimum tax rate of 15% under the second pillar. 1099. Mr. Spokesman, for this reason I am today announcing an increase in corporate income tax in Gibraltar.

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