Diexter Thomas
GIBRALTAR has finally started its double trade agreement with the UK to bring in more business.
The Gibraltar Government announced yesterday that the agreement will now attract top UK businesses to the Rock.
A double taxation trade agreement makes it so international individuals and businesses won’t be charged twice on the same income.
In the light of the Covid-19 crisis, it is thought that this double trade agreement (DTA) will strengthen Gibraltar’s economy.
The attraction of Gibraltar is its fast and highly regarded regulatory framework which is up to date with UK and EU standards.
With low corporation tax and a business-orientated fiscal system, online betting, insurance and financial services companies have made the Rock their home in recent years.
Gibraltar has continued to uphold the standards of global organisations such as the OECD and the G20.
Their insistence on tax transparency, administrative cooperation and good governance have been introduced by Gibraltar.
“It is for this purpose that the DTA with the UK is another major step forward and one that is set firmly in the right direction,” said the Gibraltar Government.
“This is a further example of the significant progress made in the last 12 months in repositioning Gibraltar’s international tax presence.”
This new tax arrangement means Gibraltar could go into the final Brexit arrangement with the possibility of expanding its UK trade.
“The Government want to avoid ‘the pitfalls identified with blacklisted jurisdictions’ because of the sanctions they might create for the Rock.
“Resources have already been deployed for the necessary studies on how best to expand Gibraltar’s network of treaty partners in the future,” said the Government.
“This is something that this Agreement has definitively paved the way for.”
Gibraltar is bracing itself to revive the economy immediately after the Covid-19 crisis is over.
Minister for Financial Services Albert Isola is hoping to pick up where it left off with the ‘Think Business, think Gibraltar’ campaign held throughout London last autumn.
