Income Tax 2010-21 INCOME TAX ACT 2010 Principal Act Act No 2010-21 Commencement (LN.2010/180) 1.1.2011 Assent 1.11.2010 Amending Relevant current Commencement enactments provisions date Act. 2011-11 s. 27 5.5.2011 2012-04 s. 14A 28.6.2012 LN. 2012/129 ss. 71, Sch. 5 & 9 4.10.2012 Act. 2012-14 ss. 39(3), (4)(a) & Sch. 10 1.7.2012 LN. 2013/0051 ss. 4 to 5F 1.1.2013 2013/081 s. 74(a) & (b) & Sch. 1 1.7.2013 2013/108 Sch. 5 1.7.2013 Act. 2013-28 Sch. 1 1.1.2014 2014-24 ss.14A(2), (3)(a), (5) & 14B 10.7.2014 ss. Schs. 1, 3, 2015-23 ss. 25A, Sch. 3, 9 1.1.2011 ss. 29, 30(1), 1.7.2013 ss. 13(1), Schs. 3, 7 1.7.2014 ss. 77, 78 22.6.2015 ss. 30(1)(b), (bb), Sch. 3 1.7.2015 ss. 6, 6A, 18A, 19, 30(1)(b), (c), 31, 31A, 32, 32A, 33, 34, 39(1)(b), (2), (4), (5), (6), (8), 41(10), 56A, 59, 59A, 60, 63, 63A, 64(1)(b), (c), 65, 65A-65F, 67(2), 68, Schs. 3, 7, 9, 10 6.8.2015 ss. 16, 29(1), (3) 1.1.2016 ss. 28(1) 1.7.2016 LN. 2015/239 ss. 5A(3), (5), (5A), 5D(5), 5F, 1.1.2016 2015/229 Sch. 5 31.12.2015 English sources None cited 1 Notice of corrigendum see LN. 2013/011 © Government of Gibraltar (www.gibraltarlaws.gov.gi) 2010-21 Income Tax Transposing: Directive 77/799/EEC Directive 2011/16/EU Directive 2011/96/EU Directive 2013/13/EU Directive 2014/86/EU Directive (EU) 2015/121 EU Legislation/International Agreements involved: © Government of Gibraltar (www.gibraltarlaws.gov.gi) Income Tax 2010-21 ARRANGEMENT OF SECTIONS Section 1. Short title and commencement. Part I- Administration 2. Administration. 3. Confidentiality. 4. Information requests from or to Member States. 5. Administrative enquiries. 5A. Exchange of information about foreign residents. 5B. Other exchange of information with Member States. 5C. Administrative cooperation with tax authorities of Member States. 5D. Sharing experience of tax cooperation with Member States. 5E. Sections 4 to 5D: supplemental. 5F. Review of operation of sections 4 to 5E. 6. Information powers. 6A. Information Powers: International obligations under exchange of information agreements. 7. Restrictions on powers. 8. Falsification etc. of documents. 9. Entry with warrant to obtain documents. 10. Service of notices. Part II- Charge to tax 11. The charge to taxation. 12. Taxation of beneficiaries. 13. Taxation of trusts. 14. Refund of certain contributions. 14A. Pensions imported from another country, territory or jurisdiction. 14B. Pensions in connection with a statutory instrument. Part III- Computation of assessments 15. Basis of assessment- persons other than companies. 16. Basis of assessment- companies. 17. Gains or profits of employment. 18. Partnerships. 18A. Entities: power to make regulations. 19. Income from occasional presence in Gibraltar. 20. Allowance of trade losses. 21. Valuation of trading stock on discontinuance of trade, etc. 22. Loans to shareholders or connected persons. © Government of Gibraltar (www.gibraltarlaws.gov.gi) 2010-21 Income Tax 23. Assessment of purchased life annuities. Part IV- Rate of taxation and assessment 24. Rate of taxation. 25. Reliefs, allowances, etc. 25A. Gifts to charity by individuals. 26. Tabling of Rules before Parliament and effect of annulment. 27. Retrospective effect. 28. Tax payers other than companies to make returns. 29. Companies to make returns. 30. Returns- supplementary. 31. Assessing procedure. 31A. Ordinary time limit of six years for making assessments. 32. Power to make enquiries on return. 32A. Offence of falsification etc. of documents in relation to a notice under section 32. 33. Assessing procedure where no return is delivered. 34. Additional, amended and discovery assessments. 35. Service of assessments and appeals. 36. Application for postponement of tax payable. 37. Relief in respect of foreign tax paid. 38. Assessments to be final and conclusive. Part V- Payment of taxation 39. Time within which payment is to be made. Part VI- Anti-avoidance 40. Anti-avoidance. 41. Notification of arrangements. 42. Procedure for clearance in advance. 43. Notification of exercise of anti-avoidance provisions Part VII- Chargeability of and acts to be done by agents and others 44. Chargeability of trustees and other representatives. 45. Chargeability of agent of non-resident persons. 46. Acts to be done by trustees and certain others. 47. Deceased persons. 48. Joint trustees. 49. Managers of companies. 50. Commissioner to appoint agents. 51. Indemnification of agents. 52. Company wound up. © Government of Gibraltar (www.gibraltarlaws.gov.gi) Income Tax 2010-21 Part VIII- Assessment and withholding 53. Assessment record. 54. Errors and defects in assessments, etc. 55. Pay as You Earn. 56. Return to be made by employer. 56A. Penalty for failure to deliver return made by employer. 57. Payment of tax of individuals employed but not domiciled or ordinarily resident in Gibraltar. 58. Deductions from payments to construction sub-contactors. 59. Returns in respect of dividends. 59A. Dividends: provision of particulars. 60. Set off of Tax Credit. 61. Repayment of tax. 62. Recovery of tax through employers and others. Part IX- Offences, surcharges, penalties and miscellaneous 63. Duty to keep and preserve records and books of account. 63A. Penalty for failure to keep and preserve records. 64. Statutory surcharge on late payment. 65. Penalties for failure to comply with requirements on return. 65A. Penalties for failure to comply with requirements on certain notices. 65B. Offence for failure to comply with requirements on certain notices and returns. 65C. Penalties for failure to comply with requirements under section 41. 65E. Penalties where no penalty is specifically provided by this Act. 65F. Failure to comply with requirement or notice. 66. Penalties for false returns, etc. 66A. Commissioner’s discretion. 67. Offences. 68. Publication of details of failure to pay taxes. 69. Recovery of taxation through the courts. 70. Savings for criminal proceedings. 71. European Union legislation. 72. Power to make Rules. 73. Tabling of Rules before Parliament and effects of annulment. 74. Interpretation. 75. Repeals, amendments and transitional provisions. 76. Disclosure opportunity. PART X -AMNESTY 77. Fixed penalty charge during amnesty. 78. Expiry of amnesty. © Government of Gibraltar (www.gibraltarlaws.gov.gi) 2010-21 Income Tax SCHEDULE 1 HEADS OF CHARGE Table A (1) Trade, business, profession or vocation. (2) Income from property. Table B Employment and self employment. Table C Other income Class 1 Dividends. Class 2 Funds income. Class 3 Income from rights. Class 4 Pension, charge or annuity income. Class 5 Sweeping up class. SCHEDULE 2 THE INCOME TAX TRIBUNAL Part 1- Administration 1. Appointment of Tribunal. 2. Appointment of Clerk. 3. Personal interest. 4. Declaration. Part II- Procedure 5. Quorum. 6. Procedure. 7. Attendance of Commissioner. 8. Privacy of proceedings. 9. Adjournment. 10. Representation. 11. Procedure in hearings. 12. Tribunal decisions. Part III- Powers © Government of Gibraltar (www.gibraltarlaws.gov.gi) Income Tax 2010-21 13. Power to vary assessments. 14. Information power. 15. Power to summons witnesses. Part IV-Appeal to Supreme Court 16. Appeal to Supreme Court. Part V- Miscellaneous 17. Irregularity. 18. Form of notices. 19. Service of notices etc. 20. Penalties. Part VI- Interpretation 21. Interpretation. SCHEDULE 3 RULES FOR ASCERTAINING PROFITS OR GAINS Part I-General 1. Measure of profits or gains. 2. Deductions not allowable. 3. Items to be included in net profits. 4. Contributions to approved pension funds. Part II- Capital allowances. Chapter 1- General 5. Capital allowances. 6. Interpretation. Chapter 2- Industrial buildings 7. Entertainment centres, mills, factories and similar premises. Chapter 3 – First Year Allowances 8. Plant and machinery. 9. Interpretation. 10. First year allowance other than computer equipment. © Government of Gibraltar (www.gibraltarlaws.gov.gi) 2010-21 Income Tax 11. First year allowance- computer equipment. 12. Basis period for first year allowance. Chapter 4 - Written down allowances 13. Pool allowance. Chapter 5 - Hire purchase 14. Assets bought on hire purchase. Part III Additional definition of income- interest as a trading receipt 15. Additional definition of income- interest as a trading receipt. SCHEDULE 4 ANTI-AVOIDANCE 1. Anti-avoidance. Part I Computation of profits or gains generally 2. Thin capitalisation. 3. Not used. Part II Transactions with connected persons 4. Transactions with connected persons. 5. Non-deductibility of interest paid on certain secured loans. 6. Chargeability of dual employment contracts. 7. Exemption from Paragraphs 2 and 4 to 6. Part III Definitions 8. Interpretation. 9. Connected persons. 10. Control. © Government of Gibraltar (www.gibraltarlaws.gov.gi) Income Tax 2010-21 11. Participator. Part IV Transfer of assets abroad 12. Prevention of avoidance of Income Tax. 13. Liability of non-transferors. 14. Exemption from Paragraphs 12 and 13. 15. Interpretation of Paragraphs 12 to 14. 16. Supplemental provisions. 17. No duplication of charge. SCHEDULE 5 Part I Parent and Subsidiary Company Directive 1. Interpretation. 2. Parent and subsidiary companies. 3. Corporation tax. Part II Taxation applicable to Interest and Royalty payments made between associated companies of different Member States 4. Interpretation of Part. 5. Application of Part. 6. Scope of Part. 7. Special provisions for certain states. 8. Criterion for establishing permanent establishment as payer. 9. Criterion for establishing identity of beneficial owner. 10. Identity of payer and beneficial owner: supplementary. 11. Certificates of exemption. 12. Information to be provided in a request under Paragraph 11. 13. Requirements where conditions for exemption cease to be satisfied. 14. Recovery of tax not deducted. 15. Repayment by company of tax deducted. 16. Regulations. TABLE A Part I © Government of Gibraltar (www.gibraltarlaws.gov.gi) 2010-21 Income Tax Article 3(a) of Directive 2003/49/EC.