TAXATION

Gibraltar Income tax is levied on a territorial basis, under the ‘accrued and derived’ in Gibraltar principle. The vast majority of Funds based in Gibraltar are not taxable in Gibraltar. As such the tax environment is well suited to support Gibraltar as an emerging Funds jurisdiction by providing fiscal advantages not only to the investment vehicle, but also to investors. Any dividends paid by such a vehicle to a non resident company or individual would not be subject to withholding tax in Gibraltar. Further, capital gains, inheritance or wealth taxes are not levied in Gibraltar. Stamp duty is payable only on the initial creation of share capital or subsequent increase of share capital and is charged at a fixed rate of £10.
It is also worth noting that the European Parent Subsidiary Directive, designed to eliminate tax obstacles in the area of profit distribution between groups of companies in the EU, applies to Gibraltar. This allows for very efficient repatriation of profits to investors since there is no withholding tax in Gibraltar on dividends paid to non-Gibraltarian shareholders. A clear advantage for Gibraltar Funds.