The Chief Officer of Gibraltar has announced the following changes in his 2022 Budget Address which took place on 28th of June.
Tax
The tax rates across all tax bands under the Allowance Based System and the Gross Income Based System are being increased by 2% for two years, after which time they will be lowered again.
Taxable income for Category 2 individuals will now be capped at £118,000 instead of from £105,000 with the maximum amount of tax payable increasing to £44,740.
From the 1st of July 2022, the minimum amount of tax payable in this category will increase from £32,000 to £37,000 annually and new Category 2 applicants will be need to pay tax a year in advance.
A new tax has been introduced for non-Gibraltan nationals who claim residency in Gibraltar but who are not in possession of a Category 2 or HEPSS certificate and are not in true third-party employment. They will be taxed on their full savings income, including pension income, interest income, dividend income and other passive income.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
At the moment, politicians across the world – especially, it seems, in the UK – are in the spotlight regarding their tax affairs. Banks, however, will also soon be in the spotlight, as by Friday 15th April they have been told to hand any information regarding their dealings with the law firm at the centre of the Panama Papers over to the UK’s Financial Conduct Authority.