Gibraltaran insurers face 10% tax

Gibraltan insurance companies which have previously been tax exempt will have to pay a 10% rate from the start of next year under new changes to the law.

The new Income Tax Act abolishes tax exemptions for all companies that previously qualified for the status.

Those companies will have to pay a 10% tax rate from the start of next year.

Companies which did not qualify for tax exemption status and were paying a 22% tax, will now have that reduced to 10%.

The changes were outlined in a Gibraltar Government document passed today.

A Government statement said: “This legislation ends all distinction between “onshore” and “offshore” business.

“Together with the 18 tax information exchange agreements already signed by the Government and others being negotiated, as well as Gibraltar’s full integration in the EU and compliance with EU financial services regulation, money laundering and co-operation rules, the new Tax Act completes Gibraltar’s 14-year transition from tax haven to mainstream European financial services centre.”

Companies domiciled in Gibraltar included Zenith, Advantage and Markerstudy.