THE Government of Gibraltar has entered into a double tax agreement (DTA) with the United Kingdom of Great Britain and Northern Ireland and is looking to extend such agreements further with other countries.
DTAs are treaties between two or more countries to avoid international double taxation of income and property.
The main purpose of any DTA is to divide the right of taxation between the contracting countries, to avoid differences, to ensure taxpayers’ equal rights and security, and to prevent evasion of taxation.
In this case, the DTA will remove barriers to international trade and investment and provide a clear and fair framework for taxing international cross-border business.
Global organisations such as the OECD and G20 continue to hold tax transparency, administrative cooperation and good governance as important agendas in the field of taxation and vital characteristics of any mainstream tax jurisdiction.
As Spain in particular has in the past accused Gibraltar of being a tax haven this is an example of the significant progress made in the last 12 months in repositioning Gibraltar’s international tax presence.
A government release declared that “the strategy to cement our position as a credible finance centre avoiding both the pitfalls identified with blacklisted jurisdictions in addition to the associated consequences and sanctions is continuing.
“Resources have already been deployed for the necessary preliminary studies on how best to expand Gibraltar’s network of treaty partners in the future; something that this agreement has definitively paved the way for.”