Gibraltar's Tax Settings Largely Unchanged In New Budget
by Jason Gorringe, Lowtax.net, London
30 June, 2017
Gibraltar's recent 2017 Budget delivered few tax changes, with income tax reduced slightly for low-income earners, a handful of changes to import duty rates, and hikes to tobacco and diesel taxation.
Personal taxation levels are to be reduced for those on low incomes, taking taxpayers with assessable income of GBP11,150 (USD14,478) or less out of the taxation system altogether. Personal and other allowances are to increase in line with inflation.
Import duty is to be reduced to three percent on handbags, jewellery and imitation jewellery, and wearable battery-operated devices (commonly known as sports trackers or watches). Exemptions will be introduced for prams, sports or dance apparel imported by or for a sporting or dance association, and indoor sporting equipment. Import duty on jet skis will rise to 20 percent.
Tax relief for electric vehicles will be enhanced and commercial premises will now also benefit from tax relief for installing solar panels.
Import duty on gold bullion is to be cut from five percent to one percent, and duty on classic vehicles is to be reduced to zero to promote the use of Gibraltar as a jurisdiction for the ownership and secure storage of high-value items. A new scheme will be implemented delaying the charging of import duty on high-value items retailing at over GBP25,000 to the time they are sold, rather than the time of import.
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