Gibraltar Publishes Rules Implementing EU Rules Against Tax Avoidance Practices

H.M Government of Gibraltar has today published in the Gibraltar Gazette the Income Tax 2010 (Amendment No. 3) Regulations 2018 ("the Regulations") which transposes into the Income Tax Act 2010 (the "Act") Council Directive (EU) 2016/1164 ("ATAD") which lays down rules against tax avoidance practices that directly affect the functioning of the internal market. The purpose of ATAD is to provide for uniform legislative implementation of some of the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) recommendations.

ATAD establishes minimum standards with respect to the following five areas:

1. interest limitation;
2. exit taxation;