Gibraltar, 15th July 2019: Gibraltar’s oldest law firm, ISOLAS LLP, has welcomed the upcoming negotiations on a double taxation agreement between the Gibraltarian and UK Governments, announced by the Exchequer Secretary to Her Majesty’s Treasury, Robert Jenrick.
The announcement brings greater clarity for businesses operating in Gibraltar as bilateral taxation agreements remove barriers to international trade and investment and provide a clear framework for taxing businesses that trade between jurisdictions.
The deal will also position Gibraltar’s offering on a level playing field with competing jurisdictions that currently already have double taxation agreements with the UK.
The agreement highlights Gibraltar’s commitments to the international standards of tax transparency and its reputation as a robust and reputable financial centre.
Christian Hernandez, Partner at ISOLAS, said: “The negotiations, expected to be finalised within months, are great news for Gibraltar, and everyone who does business with our jurisdiction. It will bring enhanced certainty on the future economic relationship with the UK for ISOLAS’s current and prospective clients. The agreement will further cement Gibraltar as being one of the best places in the world to do business, and encourage more businesses to establish a base in the territory.”
Fabian Picardo QC, Chief Minister of Her Majesty’s Government of Gibraltar, stated: “Bilateral double-taxation agreements remove barriers to international trade and investment and provide a clear and fair framework for taxing businesses that trade between us. By entering into such agreements, they benefit business and the economies of the jurisdictions concerned and should be welcomed by the community and in particular by service providers, clients and prospective clients within our financial services industries.
“As a jurisdiction, we continue to grow from strength to strength, further developing our commercial relationship with the United Kingdom and widening our offering as a finance centre. This partnership gives us and the international businesses here the certainty that they need ahead of 31 October 2019 and beyond. As Gibraltar’s relationship with the United Kingdom continues to mature, it is our people and our businesses that reap the rewards.”
Robert Jenrick, Exchequer Secretary to Her Majesty’s Treasury, commented: “Gibraltar has a special place within the UK family. That’s why I’ve come here today, to start discussions on a bespoke tax agreement between us to promote trade and investment, and help tackle tax avoidance.”
“This makes it crucial that as we leave the EU and move into the next chapter together, we make sure we take the steps necessary to keep that relationship strong."