The Gibraltar Tax Agreement Signed by Spain and the United Kingdom, it went into effect on Saturday. The text was published on Saturday in the Official Gazette (BOE) with the aim of preventing The Rock from Consolidation as a tax haven.
Deal It seeks to eliminate tax fraud And the harmful effects derived from the characteristics of the tax system of Gibraltar, a region that, although it was outside the list of tax havens of the European Union, It was included in the Spanish list approved in 1991Diplomatic sources explained.
The text lays down clear rules for Resolve tax residency disputes of natural persons more easily That may arise due to a mismatch between the actual place of residence and the registration as a resident.
It also states Form a joint committee To make it work and resolve any dispute that might arise, as specified in a statement from the British Embassy sent on Saturday.
Treaty seeks Avoid using companies subject to the tax system in Gibraltar By tax residents in Spain or to carry out economic activities in Spain. In this sense, entities or legal entities in Gibraltar will be considered to have tax residency in Spain when they have an important relationship with our country.
To determine this, sources explained, The location of most of its assets, obtained through most of its income in Spain Or when the majority of its owners or managers reside in the Spanish territory.
The text was signed on March 4, 2019, according to the British Embassy, and is the first explicitly related to Gibraltar in the past 300 years.
“This tax treaty is in the common interest of all. It demonstrates the constructive spirit of the governments of the United Kingdom and Gibraltar, along with Spain, to ensure the continued prosperity of Gibraltar and the region as a whole,” the embassy said in a statement. Statement.
The agreement, as defended by the government, constitutes “an effective tool in combating tax evasion and creates the tools necessary for this purpose.” Moreover, it asserts that it “does not imply any change as to the Spanish position regarding sovereignty and jurisdiction in relation to Gibraltar.
On the other hand, the sources clarified that the agreement should be drafted in The Memorandum of Understanding reached on December 31st between Spain and the United Kingdom regarding Gibraltar And that it should be the basis for an agreement between London and the European Union on the rock, and this ultimately means the inclusion of this area in the Schengen area.
The two governments are confident that this agreement can be concluded within six months, but the European Commission has not yet published the negotiating framework so that the process can begin.
The entry into force of the tax agreement is now possible after that Spain has completed the certification processWith the approval of Congress and the Senate. This approval was controversial, because in the case of the House of Representatives, last July, PP and Vox both voted against it.