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Member, Beacon International Group, Ltd.
GIBRALTAR A cut in Gibraltar's corporate taxes will lessen the pain felt by captive insurers when they lose their tax-exempt status in the domicile in 2010.
Peter R. Caruana, Gibraltar's chief minister, said in a June 26 speech that an across-the-board flat corporate tax will be in place by mid-2010. "This will most probably be set at 10%, but in any event not higher than 12%," he said. "This will be similar to arrangements that already exist in Ireland, Cyprus, Malta and other European Union countries."
Gibraltar-domiciled captives that were formed before last June are exempt from corporate taxes until 2010, when they will fall under the jurisdiction's corporate tax scheme.
Effective immediately, corporate taxes will be reduced to 33% from 35% for the 2007-2008 assessment year and will fall to 30% for the following year, said Mr. Caruana. "I would also signal the intention of a further reduction the year after that to 27% in anticipation of the flat low tax rate in 2010," he said.