Neish, James: New Taxation Measures in Gibraltar

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  • New Taxation Measures in Gibraltar by James Neish
    • In his budget speech in June 2005 the Chief Minister announced attractive new tax measures. These were: 1. Tax on Savings Income Income Tax is abolished on all savings income. For these purposes savings income means: (a) dividends arising from investments quoted in a recognised stock exchange. (b) interest paid directly or indirectly – by banks, building societies or other financial services institutions licensed in Gibraltar or in any other recognised jurisdiction to undertake deposit-taking or investment business; or arising from investments quoted on a recognised stock exchange; or by the Gibraltar Government Savings Bank. 2. Dividends & Interest paid by Companies Taxation is abolished on dividends paid by one Gibraltar Company to another Gibraltar Company. Taxation is abolished on dividends and interest paid by a Company to a non resident recipient. The requirement to withhold tax from dividends in accordance with Section 39 of the Income Tax Ordinance is abolished. 3. Unilateral Tax Relief The unilateral tax relief provisions will be extended to all countries.

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