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%.
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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.