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

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 | darrenanton@kpmg.gi 

The information contained in TaxNewsFlash is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230, as the content of this document is issued for general informational purposes only, is intended to enhance the reader’s knowledge on the matters addressed therein, and is not intended to be applied to any specific reader’s particular set of facts. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
 

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.
 

Direct comments, including requests for subscriptions, to Washington National Tax. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 1801 K Street NW, Washington, DC 20006-1301.
 

To unsubscribe from TaxNewsFlash-United States, reply to Washington National Tax.
 

Privacy | Legal