Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/10/2014

Gibraltar - Tax proposals in 2014 budget 

July 10: The Chief Minister of Gibraltar on 30 June 2014 delivered the budget for 2014, and changes are proposed to the taxation of individual and business taxpayers.

Among the tax provisions:


  • For individual taxpayers, the standard rate of tax would decrease from 30% to 20% from 1 July 2014.
  • Beginning 1 July 2014, certain loans will not be treated as earnings from employment—i.e., loans or advances made to a director, a shadow director or any connected person when the terms of the loan have an arm’s length interest rate and the loan arrangements have received approval from the Commissioner of Income Tax.
  • Allowances for the construction of “high value” residential developments are to be introduced, for construction made prior to December 2015. These allowances would be similar to the office construction allowances introduced last year, and could be claimed by either the developer or occupant and would be equal to 30% of the construction costs in the first year after completion, with the remaining 70% to be written down over the next seven years.
  • There are measures concerning the rate of import customs duties on certain goods and merchandise.

Read a June 2014 report prepared by the KPMG member firm in Gibraltar: Gibraltar 2014 Budget: Tax Highlights




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