Gibraltar enjoys a very simple and business-friendly tax system.
Low Corporation Tax
A flat 10% Corporate Tax rate came into effect on January 1, 2011 for all companies (energy and utility providers are subject to 20% tax). Companies are taxed on profits accrued in or derived from Gibraltar (i.e. territorial basis of taxation).
Gaming Tax: 1% of relevant income (gaming yield for remote casinos and bets placed from on-line bookmakers) capped at $698,729 with a minimum payable of $139,745.
Key Tax Pointers:
No inheritance Tax of Estate Duty
No Wealth or Gift Taxes
No Capital Gains Tax
Minimal Stamps Duty rates
No tax on Bank interest
No tax on listed investment income
Tax payers can opt to be taxed under an Allowance Based System or under a Gross Income Based System.
Allowance Based System
Taxable income bands Rate % Tax on band
$ 0 - 6.576 17 reduced rate $ 1117
$ 6.576 - 26.305 30 standard rate $ 5918
over $ 26.305 40
Gross Income Based System
The income bands and tax rates for income up to $ 41,080 are:
First $ 16.432 6%
$ 16.436 –$ 27.934 20%
The income bands and tax rates form income above $ 41,080 are:
First $ 27.9342 16%
$ 27.9342 - $ 41.080 19%
$ 41.084 - $ 65.728 25%
$ 65.732 – $ 172.538 28%
$ 172.542 - $ 500.000 25%
$ 500.004 – $1.150.254 18%
$ 1.150.258- $ 1.643.220 10%
Balance at 5%
Individuals Enjoying Special Concession
High Net Worth Individuals (“Category 2 Individuals”)
Only the first $131,457.60 (2010/11 - $131,457.60) of assessable income is taxable subject to a minimum tax payable of $36,150.84 (2012/11 - $36,150.84) and a maximum of approximately $49,296.60 (2010/11 - $49,296.60).
Conditions on residential accommodation and previous residence/activities in Gibraltar apply. Category 2 individuals cannot, in general, engage in trade, business and employment in Gibraltar.
High Executive Possessing Special Skills (HEPSS)
The tax payable by a HEPSS is limited to the first $1,971,864 of earned income. The relevant skills must be deemed to be of exceptional economic value to Gibraltar.
HEPSS are taxed under the Gross Income Based System. Conditions on residential accommodation and previous non-residency apply.