David Jetuah, Accountancy Age, Wednesday 16 June 2010 at 16:45:00

Gibraltar makes moves to lift "tax haven" tag which includes endingdistinction between onshore and offshore business

The Gibraltar government has published a revamped Income Tax Act ending alldistinction between ?onshore? and ?offshore? business in efforts to evolve from"tax haven" to "mainstream European financial services centre."

The new act lays the foundations for the reduction of company tax inGibraltar from 22% to 10% as from 1 January 2011, to coincide with thedefinitive abolition of the historical tax-exempt company regime, the Gibraltargovernment said today.

"This legislation ends all distinction between 'onshore' and 'offshore'business," the government added.

Gibraltar has now signed 18 tax information exchange agreements with otherjurisdictions and has others in the pipeline.

The offshore centre's full integration in the EU and compliance with EUfinancial services regulation, money laundering and co-operation rules,alongside the new Tax Act completes Gibraltar?s 14-year transition from taxhaven to mainstream European financial services centre, the government added.