Gibraltar Amends Income Tax Law
by Jason Gorringe, Lowtax.net, London
31 December, 2013
Gibraltar has amended the Income Tax Act 2010 to comply with European Union (EU) requirements, and the relevant bill has been submitted to the European Commission's (EC) fiscal team in Brussels.
Speaking to Parliament on December 23, 2013 Chief Minister Fabian Picardo outlined the amendment, noting that it addresses the EC's concerns over two aspects of Gibraltar's Income Tax Act 2010, namely the tax exemptions for inter-company loan interest and royalties income.
Earlier this year the EU Code of Conduct Group judged the exemption for inter-company loan interest to be harmful according to the Code of Conduct on Business Taxation. The EC said that the measure amounts to a form of state aid. As a result Gibraltar abolished the exemption in an Act which entered into force on July 01, 2013.
The new bill will abolish the exemption for royalties income, the chief minister said.
The EC's fiscal team has informally expressed satisfaction with the amendment.
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