There are two tax systems in Gibraltar:
Allowance Based System
The Allowances Based System (ABS) of taxation enables individuals to claim allowances against their gross income, and pay tax on their net income.
This applies where your personal contributions, together with contributions to any other approved Gibraltar approved pension arrangement and premiums to any qualifying life assurance policies do not exceed, in total, one sixth of your assessable income.
Gross Income Based System
The alternative Gross Income Based System (GIBS) of taxation requires you to pay tax on your gross income at a lower rate than under the ABS.
If you are taxed under the Gross Income Based System, tax relief up to £1,500 per annum is available.
It is important to note that allowances and rates may vary depending on the tax year.
If you are unsure of the tax system applicable to your salary, you should request confirmation from your HR department.
Employer contributions are not included as taxable income for employees and will not result in any additional tax charges.
For the purposes of your tax status and The Criminal Finance Act 2017, the Trustee strongly recommends that you seek tax advice prior to making any decisions regarding your financial arrangements. You must advise the Administrator of any change to your tax residency and/or domicile within a reasonable period and be and remain tax compliant.