Gibraltar to cut corporate tax rate by 2010

Gibraltar will reduce its corporate tax rate to as low as 10% by 2010, from its current rate of 33%. The move follows pressure from the EU for Gibraltar to fall into line with other European States, by abandoning the tax exempt company regime, which applies one tax system to local companies and another to foreign companies. Chief Minister Paul Caruana also announced in his latest Budget that corporate tax rates would be gradually reduced in the meantime - by 2% in 2007/08 to 33%, and by 3% in the following two years. This will bring it down to 27% by the 2009/2010 tax year. Caruana said:...