Personal Income Tax
Individuals can opt to be taxed under one of two systems, whichever is most advantageous.
(i) Allowances Based System
Tax is calculated on net taxable income, after being reduced by allowances and deductibles:
| First £4,000 |
17% |
Next £12,000 |
30% |
Over £16,000 |
40% |
A tax credit of £300, or 2% of the resultant tax liability (whichever is greater) is then applied. Various allowances for self, spouse, family and dependants may be claimed.
Key deductible items include:
Home purchase: |
£15,500 max in total |
Mortgage interest: |
for loans to £300,000 |
Life assurance: |
subject to conditions |
Medical insurance: |
max £1,120 |
Pensions: |
Lower of 20% of
earnings or £35,000 |
(ii) Gross Income Based System
Tax is calculated on gross assessable income:
First £17,000* |
16% |
£17,001 to £25,000* |
19% |
£25,001 to £40,000 |
25% |
£40,001 to £105,000 |
28% |
£105,001 to £500,000 |
25% |
£500,001 to £700,000 |
18% |
£700,001 to £1M |
10% |
Over £1M |
5% |
* However, individuals with gross assessable income not exceeding £25,000 pay at 6% on the first £10,000, 20% on the next £7,000 and the balance at 28%.
Special Tax Status for Individuals
Available for applicants satisfying the various eligibility criteria and subject to the rental or purchase of an approved residential property.
|
|
(i) High Net Worth Individuals (Category 2)
Persons with net wealth of £2M+ can apply to pay tax only on their first £80,000 of taxable income, equivalent to tax of less than £30,000, but subject to a minimum of £22,000.
(ii) High Executive Possessing Specialist Skills status (“HEPSS”)
Relocating executives with relevant skills pay tax only on the first £120,000 of their assessable income (maximum tax £30,000). A minimum salary of £100,000 is required.
Exempt & Non Taxable Income
- Investment interest, dividends and royalties.
- Occupational pension income is taxed at 0% for persons
aged 60 and over.
Capital Gains Tax - none
Inheritance, Estate & Wealth Taxes - none
Value Added Tax - none
Withholding Taxes - none
Stamp Duty on Real Estate
Purchase Price |
Rate |
To £200,000
|
Nil |
From £200,001
to £350,000 |
2.0% on first £250,000
5.5% on balance |
Over £350,000 |
3.0% on first £350,000 |
|
3.5% on balance |
Company Income Tax
10% standard rate. Tax is charged only on income ”accrued in or derived from” Gibraltar.
Almanac Limited,
11 Governors Street, Gibraltar
T: +350 200 42250 F: +350 200 42252
E: mail@almanac.gi
www.almanac.gi
|
