The Government of Gibraltar has published revised anti-tax avoidance provisions, reinforcing its commitment to fair taxation and aligning with global standards. 

A statement from the Government follows below:

Similar provisions are not uncommon in other jurisdictions and are now a key feature of any progressive and modern tax framework, such as those outlined in the UK’s 2025 Spring Budget recently. 

The new anti-avoidance rules grant the Commissioner of Income Tax broad powers to counteract or disregard any tax advantage obtained from arrangements believed to deliver a tax advantage that is inconsistent with legislative intent or undermines the objectives of our tax laws. This ensures that taxation is applied fairly and consistently, with the authorities adopting a substance-over-form approach, meaning that the Commissioner will assess the economic reality of transactions rather than just their legal form. 

These provisions align Gibraltar with OECD guidance and internationally accepted tax principles, reinforcing Gibraltar’s commitment to transparency, responsible tax governance and in combatting aggressive and harmful tax practices. 

Key provisions include professional accountability, under which the Commissioner is empowered to refer tax practitioners and advisors to their professional or regulatory bodies where itis believed they are promoting or facilitating tax avoidance schemes or acting in a conflicted position, and rules which prevent shareholders from deferring tax by accumulating profits within companies and subsequently liquidating them for tax-free distribution. 

The introduction of these measures reflects Gibraltar’s ongoing commitment to enhance Gibraltar’s reputation as a tax compliant and responsible jurisdiction for businesses and investors. 

Minister for Taxation, Nigel Feetham KC MP, stated: “Gibraltar is committed to a robust, fair tax system that meets global standards such as those set by the OECD. These measures support the Government’s tax compliance strategy, targeting complex tax avoidance schemes and ensuring that large businesses benefiting from our regulatory and licensing regimes contribute their fair share of tax. This strengthens our fight against tax avoidance while maintaining Gibraltar’s position as a transparent, attractive financial centre, helping secure our future economic prospects and broader macro-economic interests.”