Gibraltar, a Vote of Confidence for Corporation Tax?
Europa Trust Company Ltd
26 May, 2017
The United Kingdom (UK) will head to the polls on 8 June 2017 for a snap general election. There is always uncertainty whether political parties can deliver on their particular promises, including promises about the UK corporation tax. Gibraltar remains rock stable on this topic. Europa Trust Company Ltd reports on this advantage and others that Gibraltar can offer.
Corporation tax is a tax on profits made by a company. The three major UK political parties consisting of the Liberal Democrats, Labour Party and Conservative Party, have each outlined different promises on corporation tax in their respective election manifestos.
All three have failed to mention that it is notoriously difficult to forecast Government income from corporation tax. The reason it is difficult is that it relies on a predication on a forecast about an uncertain future.
The current corporation tax in the UK is 19%. Each of the three main political parties promises different changes in their proposals on the tax if they win the general election. One political party claims it will reduce the corporation tax, another plans a moderate increase and the third proposes to dramatically increase the corporation tax rate to 26%. A fourth, lesser party, wants to increase the rate to 29%!
Businesses, families and individuals seeking stability or certainty should consider Gibraltar. While uncertainty remains regarding the outcome of BREXIT, Gibraltar is currently the only territory in Europe that will have guaranteed, automatic access to the UK financial services and other areas.
There is no tax on profits; a Gibraltar company conducting profit-making activity outside of Gibraltar will not suffer tax on its profits. Additional advantages of Gibraltar is that there is no VAT, therefore VAT is not an issue from a Gibraltar tax perspective. There is no capital gains tax, wealth tax or estate duty in Gibraltar. Gibraltar has been listed as a "White" territory by the OECD since 2009 and continues to have a low tax-rate (where applicable) of 10%.
These advantages of Gibraltar show that it is a rock stable choice for businesses, families and individuals concerned over the uncertainty and future within the UK political arena.
Further advantages of Gibraltar can be found on our website by clicking here.
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