­Today Fabian Picardo, announced that Gibraltar corporation tax is set to rise from 10% to 12.5%.

The Chief Minister set this in the context of the Global Minimum Tax Rate Pillar 2 proposal from the OECD to which Gibraltar agreed in June and a fiscally difficult landscape stemming from the Covid pandemic. Mr Picardo explained that if the global minimum rate mandated a minimum rate of 15% across the globe then such a change would be less troublesome if an interim rate of 12.5% was adopted.

Hassans understand that there will be many questions arising from this change. What is clear from his statement is that at this time the tax base applicable to corporate entities will not be amended to alter the territorial basis of taxation which has been a feature of Gibraltar's tax system since the 1950s.

What is certain is that in such difficult economic times tax increases are inevitable and Hassans is happy to assist its clients understand the changes as regulations are published in the coming days. The tax pages on our website with be updated with all the details shortly.