Press Release: European Commission proposes reform of Gibraltar tax regime

The European Commission adopted on 27 November 2002 a recommendation to the United Kingdom for the abolition or reform of the Exempt Company regime in Gibraltar. Under the regime, an Exempt Company pays no income tax on its profits. Instead, it is subject to a low, fixed annual tax. The Commission has decided that this tax exemption constitutes State aid favouring Exempt Companies and should therefore be phased out by the end of 2005 at the latest.

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