Gibraltar: Anti-tax avoidance measures concerning interest limitation, CFCs, hybrid mismatches

21 December 2018

The EU Anti-tax Avoidance Directive (ATAD) was on 20 December 2018 transposed into Gibraltar’s domestic tax provisions.

The EU directive was transposed into the Gibraltar tax rules by Income Tax Act 2010 (Amendment No. 3) Regulations 2018. The regulations will apply with respect to accounting periods beginning on or after 1 January 2019 in relation to “ordinarily” resident companies in Gibraltar (those with assessable income in Gibraltar) or to a permanent establishment in Gibraltar.

The regulations provide anti-avoidance rules in accordance with the EU directive specifically concerning:

  • An interest limitation rule
  • A controlled foreign company (CFC) rule
  • A rule addressing hybrid mismatch arrangements

The rules regarding exit taxation have been delayed, but must be published by 31 December 2019.


For more information, contact a tax professional with the KPMG member firm in Gibraltar:

Darren Anton | +350 200 48600 | 


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