UK DTA now in force with consequences for Gibraltar residents

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On 15th October, Gibraltar and UK entered into a double taxation agreement. This comes against the backdrop of UK signing an agreement with the Kingdom of Spain to enter into an agreement for the protection of economic interests. The two documents, the UK DTA and the Spanish Treaty, are substantially different and will have different consequences for those living in Gibraltar.

C. 80 local clients and contacts attended a seminar on the afternoon of Friday 25th October at Hassans’office in Midtown to get up to speed with the critical aspects of the Agreement. The session was opened by Partner Isaac Levy, with Grahame Jackson, Partner and tax expert, delivering an introduction to the concept of double taxation treaties and a technical analysis of the key aspects of the UK DTA.

Having highlighted the most relevant section; rulesrelating to immovable property (Article 6), business profits (Article 7), Dividends (Article 10), Interest (Article 11), Capital Gains (Article 13), Non-discrimination (Article 23), Grahame commented:

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“As the Chief Minister indicated at a recent Chamberof Commerce event, negotiating DTAs is not a given for a smaller jurisdiction, but now Gibraltar has a UK DTA in the form of the Model Convention, the establishment of a wider treaty network will be immeasurably easier. The benefits of opening the globe to Gibraltar’s trade will hopefully be long lasting and will invigorate our economy for years to come.”

He concluded:

“The UK DTA covers UK income and corporation tax, capital gains tax and Gibraltar income and corporation tax. It is irrelevant to all other taxes. If you think that you may be affected by the new Agreement, it is important you take full tax advice in the relevant jurisdiction. Tax matters are complex and should be considered fully by qualified advisors.”

Should you wish to discuss your individual or business status, please email business@hassans.gi to request a meeting.