Investing In... INVESTING IN
GIBRALTAR Clark Elder, KPMG
“As a member of the EU, its ability to diversify and attract growing sectors of the financial services industry and its low tax regime, Gibraltar should be the jurisdiction of choice for many investors”
C Q
lark Elder is the dedicated Risk Consulting advisory resource within KPMG Gibraltar. He has extensive experience in various financial sectors including fiduciary services, banking and investment management.
Clark
has worked in Gibraltar since 2009 and has advised a diverse portfolio of local and international clients.
KPMG Advisory is a leading professional services firm with vast business advisory experience. Clark’s area of expertise is Risk Consulting, which includes assisting firms with seeking authorisation, providing guidance on regulatory developments, designing gap analysis matrices to identifying integrity risks, performing internal compliance reviews and providing access to KPMG’s global benchmarking surveys.
What makes Gibraltar an attractive investment/business destination?
The advantages of Gibraltar are: 1. Part of the EU - which is important for the adoption of EU Directives.
2. Well regulated - in today’s environment, regulation is becoming more and more important to investors.
3. Lower cost - a lower cost alternative to other established jurisdictions.
4. Low tax - Gibraltar companies/funds are tax efficient vehicles.
5. Speed of set up – The establishment of corporate structures, certain funds and notification to the regulator.
6. Flexible products - that enable and support a wide range financial and non-financial businesses.
Gibraltar has a real appetite for new and dynamic
business. This was emphasised by Gibraltar’s Chief Minister, Fabian Picardo at the recent 14th Annual Gibraltar Day celebrations in London: “Gibraltar has the human capital, the bandwith, the infrastructure and – despite our size – the space for your business”. Gibraltar’s economy this year enjoyed a GDP growth of almost 8%. Gross and net debt have been reduced, as well as a fourfold increase in available cash reserves.
Q
What policies currently exist in Gibraltar that benefit business
and investment?
Gibraltar is a leading International Finance Centre within the European Union. As an Overseas Territory for whose external relations a Member State is responsible, i.e. the UK, financial services companies are able to “passport” their services throughout the EU. However, Gibraltar is not part of the EU VAT or Customs Union and, as a result, there is no VAT in Gibraltar.
Gibraltar has signed numerous Tax Information Exchange Agreements with other countries and is listed on the OECD white list. Gibraltar is also committed to the ‘automatic exchange of information’ initiative by showing support to the OECD multilateral convention with the G5 countries. The Government of Gibraltar has signed an Intergovernmental Agreement (IGA) with the United Kingdom to improve international tax compliance under the Foreign Account Tax Compliance Act (FATCA).
There is no withholding tax in Gibraltar on dividends, royalties and generally, interest payments made by a Gibraltar company. This makes Gibraltar an attractive jurisdiction for the setting up of Collective Investment Schemes and investment businesses.
Gibraltar seeks to attract highly motivated individuals by offering a beneficial tax regime for executives or senior management that have specialist skills, known as “HEPSS”, which refers to the High Executives Possessing Specialist Skills Rules 2008. If an individual meets the conditions, and their company’s application for the HEPSS regime is successful, certain assessable income, such as “gross emoluments” of employment, will be capped. For the 2013/14 (Gibraltar tax year of assessment, which runs from 1 July 2013 to 30 June 2014), the cap is £120,000.
Q
What are the main considerations that a company should take when looking at Gibraltar as a Jurisdiction?
Gibraltar is a well regulated jurisdiction and therefore has certain regulatory requirements. It is key for a business to understand these and ensure they have obtained the appropriate authorisation before undertaking any activities.
The company’s activities and substance in Gibraltar will have an impact on the company’s tax situation.
For certain activities, for example Gaming, companies need to consider the infrastructure and data services providers available to them. Gibraltar is well positioned in both of these areas, hence why some of the world’s leading Gaming and Blue chip companies operate from Gibraltar.
Clark Elder Tel: +350 200 48600
Email:
celder@kpmg.gi
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2014 KPMG Advisory Limited, a Gibraltar limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative “KPMG International”, a Swiss entity. All rights reserved.
29
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66