The EC has opened an in-depth state aid investigation into the new Gibraltar corporate tax regime introduced by the Income Tax Act (ITA) 2010. It is based on the territorial principle; all activities deriving from or accrued in Gibraltar are taxed. However, there exists an exemption for passive income (i.e. dividends, royalties and certain types of interest), which is no longer subject to tax in Gibraltar irrespective of where the source of the income is located; and it is this exemption in particular that the Commission will examine.
The EC has opened an in-depth state aid investigation into the new Gibraltar corporate tax regime introduced by the Income Tax Act (ITA) 2010. It is based on the territorial principle; all activities deriving from or accrued in Gibraltar are taxed. However, there exists an exemption for passive income (i.e. dividends, royalties and certain types of interest), which is no longer subject to tax in Gibraltar irrespective of where the source of the income is located; and it is this exemption in particular that the Commission will examine.
