Gibraltar

Gibraltar

The European Commission has formally requested the United Kingdom to abolish the exempt company tax régime in Gibraltar by the end of 2010 because the scheme violates the EC Treaty's ban on state aid liable to distort competition. By this request which takes the form of a recommendation and follows extensive negotiations the Commission intends to put a definitive end to the last offshore tax régime in Gibraltar.

The UK has one month to accept these appropriate measures failing which the Commission may open a formal state aids investigation.

Under the régime a company registered in Gibraltar as an exempt company is subject to a fixed annual tax of between £225 and £300. It is exempt from any further taxation in Gibraltar. An exempt company may not conduct any trade or business within Gibraltar. No Gibraltarian or Gibraltar resident...