Gibraltar Budget Speech 2022

July 18, 2022

BUDGET KEY FACTS

CORPORATE TAX

No change to corporate tax rate of 12.5%.

Audit threshold increased from £1,250,000 to £1,500,000 for periods ending on or after 1 July 2022.

Additional deduction marketing allowance of 50% announced in previous Budget to be revoked with immediate effect. Deduction will be given for one year only and on condition that Gibraltar is marketed as a destination and jurisdiction.

PERSONAL TAX

Increase of 2% of all personal tax rates for a period of 2 years.

Increase of tax rate on all income over £105,000 to 27%.

Cat 2 individuals minimum and maximum tax increased by £5k to a minimum of £37,000 and a maximum of £42,310.

No change to HEPSS.

Non Gibraltar national claiming residency and who is neither a Cat 2 or HEPSS individual or is in true 3rd party employment, will be taxed on savings income, including dividend, interest, pension and income from other passive sources.

IMPORT DUTY

Import duty pre-covid rates to apply with immediate effect on commercial imports. 

MINIMUM WAGE

Min wage to be increased from £7.50 to £8.10 per hour.

OTHER MEASURES

COVID recovery charge of £25 per company per week for a period of 2 years from 1 August (to be reviewed by Government).

Tourist tax of £3 per visitor per night to be paid as from 1 August by all hotel and Air BnB visitors.

£1 environmental levy to be be payable by all cruise passengers as from 1st April 2023.

Tax Office to charge for administration requests as from 1st September 2022.

Tax office to review current penalty regime and seek alternatives.