Gibraltar/United Kingdom Double Tax Agreement – Working Examples

On 24th March 2020 H.M. Government of Gibraltar announced that, pursuant to the relevant notifications having been exchanged, the Double Tax Agreement which was signed by H.M. Government of Gibraltar and H.M Government of the United Kingdom in October 2019 (the "DTA") is now in force.

What is a Double Tax Agreement?

Double taxation agreements (also known as double taxation treaties or conventions) (DTAs) are primarily aimed at reducing juridical double taxation. A double taxation agreement is an agreement made between (usually) two jurisdictions, which allocate taxing rights on various items of income and gains between them. DTAs typically alleviate double taxation in one of the jurisdictions or by requiring the country in which the person subject to tax is resident to grant relief for source state taxation through a credit or exemption mechanism.