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Gibraltar: Law of Offshore

Confidentiality

Within the general statutory duty of confidentaility, authorised institutions, and their controllers and subsidiaries, and institutions of which authorised institutions are controllers, are permitted to exchange between each other information about their customers necessary to facilitate supervision of institutions on a consolidated basis in accordance with Council Directive 83/350/EEC (as extended, where applicable, by the EEA agreement) or any successor thereto.

In December 2005, it emerged that an agreement had been reached between the governments of Gibraltar and the United Kingdom over the Rock's obligations under the EU Savings Tax Directive, which came into force in July of that year.

The jurisdiction had come under fire from the Channel Islands, as its legal status in relation to the UK and European Union meant that the Directive did not apply to it in quite the same way.

However, under the deal announced by the UK's Paymaster General, Dawn Primarolo and Gibraltar's Chief Minister, Peter Caruana , Gibraltar and the UK exchange information about the returns on savings under the Directive, or, in Gibraltar's case only, if the savers so choose, impose a withholding tax on returns on savings of UK residents with accounts there.

The rate was set at 15% from April 1, 2006 to June 30, 2008, following which it rose to 20% for the next three years, and 35% thereafter.

 

 

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