Amendments to Gibraltar's corporate tax

Co-Authors

Gibraltar's Minister for Justice, Trade and Industry, Nigel Feetham MP, yesterday announced the extension of paragraph 15, Schedule 3 of the Income Tax Act to insurance companies and distributed ledger technology providers, which will come into effect on 1 February 2024.

Under paragraph 15, Schedule 3, money lenders and deposit taking institutions (effectively banks and similar institutions) are charged tax on their interest income, treated as trading income. With the amendments announced yesterday, the scope of of this section will be extended to insurers and Distributed Ledger Technology (DLT) firms. The ministerial statement released yesterday provided the following:

“This reform therefore considers the changes necessary to modernise our tax legislation providing certainty and clarity whilst balancing the need to maintain minimal administrative burden or unfair additional tax on the general body of taxpayers. This measure is rooted in the principles of ensuring fairness in taxation; one that ensures that financial services entities contribute to the nation’s economic well-being.”

If you have any queries, please feel free to reach out to myself (Caroline.lane@hassans.gi) or Yvonne Chu (Yvonne.chu@hassans.gi) and we are happy to assist.

This measure is rooted in the principles of ensuring fairness in taxation; one that ensures that financial services entities contribute to the nation’s economic well-being. www.gibraltar.gov.gi/...