Gibraltar Cuts Personal Income Tax In 2015 Budget
by Jason Gorringe, Lowtax.net, London
29 June, 2015
Gibraltar has published its 2015 Budget, announcing personal income tax cuts after a strong year for the economy, which grew by 10.3 percent.
The tax-exempt allowance will increase from GIP3,100 (USD4,875) to GIP3,200 for individuals. On taxable income thereafter, personal income tax rates will fall by one percent. The rate on taxable income of up to GIP4,000 will be cut to 14 percent; the next GIP12,000 in taxable income will be subject to a 17 percent; and any income above this amount will be subject to a 39 percent rate.
Social security contribution rates will be frozen, resulting in an effective fall in the tax burden of 11 percent, the Government said.
Under the Gross Income Based System, taxpayers will newly pay a five percent rate on income exceeding GIP700,000, down from 10 percent currently.
The Budget includes a number of minor indirect tax measures and also a stamp duty exemption for first- and second-time buyers on the first GIP260,000 of a property's value.
The Government has also announced plans to launch a tax amnesty, which it considers may be a first for the territory.
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