Gibraltar prepares for new tax model

A new tax model has been included in the Ministry for Financial Services and Gaming budget.

Gibraltar.- Gibraltar’s Minister for Financial Services and Gaming, Albert Isola, has announced his plans for a new tax model in this week’s Budget. The financial move comes after a long consultation process that included industry executives’ opinions.

The territory is getting ready for major changes as it is expected that Brexit will have a significant impact on the gaming industry. While the new taxation scheme has taken effect, Isola said that companies that would likely be more affected by it had been warned in advance to take preventive measures and be ready.

The new regime establishes that B2C gambling companies (both casino and sports betting operators) have to pay 0.15 per cent tax on their annual gross receipts. The new annual licensing fees are set at £85k for each B2B licence, while B2C companies have to pay £100k.

“As with any changes in tax modelling, there are ‘winners and losers’. My staff have been assiduous in ensuring those who are likely to pay substantially more have been kept abreast of developments, the reasons for the changes, and how they will impact on them,” said Isola.

“I can assure the House that this new model is necessary and has been carefully developed to complement a constantly changing industry landscape. Ideally, the transition would have been initiated at an earlier point in the year and with more information available, but that detail will be provided in the days and weeks to come and I am confident we have the right model and now is the time to introduce it,” he added.