Gibraltar is a peninsula situated at the southern tip of continental
Europe. It has a multi-cultural background with approximately 30,000
residents. English is the official language. Gibraltar is a Dependant
Territory of the United Kingdom with a constitutional guarantee
against the transfer of its sovereignty.
Gibraltar has approval of its Know Your Customer Rules
(KYC) by the Internal Revenue Service (IRS). The
Territory has also received approval for Qualified Intermediary
(QI) status. It is a territory of the EU (unlike Jersey, Guernsey
and the Isle of Man), and has implemented EU laws covering every
aspect of financial regulation, including the directive on combating
money laundering. Gibraltar has exemptions from Community policy
in the Common Agriculture and Fisheries Policies, the Common Customs
tariff, the free movement of goods (but not services) and the levying
of VAT. The UK Government has delegated to the Government of Gibraltar
responsibility for giving effect to EU legislation in the Territory,
but retains ultimate responsibility for the application of EU law
in Gibraltar. Gibraltar has permission to passport financial services
business into the EU. Passporting rights into the EU and EEA single
market in investment services were granted to Gibraltar investment
services providers in June 2003.
Gibraltar enjoys a low tax regime, with no capital gains tax, no
wealth tax, no inheritance tax, no gift tax, no estate duty, no
value added tax (VAT) and no exchange controls. Opportunities exist
for individuals and companies to be either tax exempt or to substantially
reduce their exposure to taxation on income and profits.
In Gibraltar the Financial Services Commission
(FSC) is responsible for the supervision and regulation of all companies
and individuals who offer financial services to the public in or
from Gibraltar. The FSC is required by statute
to match United Kingdom standards in supervisory practices. Gibraltar
is rated as a benchmark jurisdiction with respect to its financial
regulation. The IMF noted that Gibraltar "is at the forefront
of good practices".
For more information, visit the FSC's
website at www.fsc.gi.
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