Gibraltar’s Budget contains measures that affect individuals: lower income tax rates, higher income tax exemption thresholds, and increased allowances and deductions, which take effect from July 1. There are also incentives for first-time home-buyers and individuals contributing to pensions.
The recently announced Gibraltar Budget contains measures affecting individuals such as lower income tax rates, higher allowances, and increased deductions.
Modifications introduced by this Budget will impact taxpayers’ marginal rates of taxation, in many instances, lowering their rates. International assignment cost projections and where appropriate, adjustments by payroll administrators to withholdings, should be considered. With some of these changes taking effect from 1 July 2014, employers are faced with a short period of time to make necessary payroll adjustments.
On 30 June 2014, Fabian Picardo, the Chief Minister of Gibraltar, delivered his third and most extensive (over 100 pages) Budget speech, which he declared as a “game changing” Budget for all the community and exciting times for businesses in Gibraltar.1
Below we highlight some of the changes to the tax system affecting individuals. (For more complete details on the Budget, see “Gibraltar 2014 Budget: Tax Highlights“, published by the KPMG International member firm in Gibraltar.)
The changes announced in the Budget presented on 30 June 2014, will be embodied in draft legislation and presented to Parliament for approval. It is difficult to say how long this process will take as deadlines have not been set or made public. Draft legislation has not yet been released and Parliament will be in recess until September.
1 For the budget speech and related documents, see: Press Office
2 For more information on the personal income tax system in Gibraltar, including a review of ABS and GIB, see the KPMG publication “Taxation of International Executives: Gibraltar”.
4 For other allowances and deductions for individual taxpayers in addition to those mentioned, see “Gibraltar 2014 Budget: Tax Highlights“, published by the KPMG International member firm in Gibraltar.
For coverage of last year’s budget, see Flash International Executive Alert 2013- 111, 8 August 2013.
The information contained in this newsletter was submitted by the KPMG International member firm in Gibraltar.
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