Tax
Gibraltar Comes Into The EU Savings Tax Fold
An agreement has been reached between the governments of Gibraltar and the United Kingdom over the dependent territory’s obligations under t...
An agreement has been reached between the governments of Gibraltar and the United Kingdom over the dependent territory’s obligations under the EU Savings Tax Directive.
Gibraltar had been criticised by the Channel Islands, as its legal status in relation to the UK and European Union meant that the directive did not apply to it in the same way.
Under the terms of the deal Gibraltar and the UK will exchange information about the returns on savings under the directive, or, in Gibraltar's case only, if the savers so choose, will impose a withholding tax on returns on savings of UK residents with accounts there.
The rate has been set at 15 per cent from April 1 2006 to June 30 2008, following which it will rise to 20 per cent for the next three years, and 35 per cent thereafter.
