background image
European Commission Publishes Non-Confidential Version of Decision that Gibraltar Granted Illegal State Aid with Exemption for Interest and Royalties — Orbitax Tax News & Alerts

On 25 January 2019, the European Commission published the non-confidential version of the 19 December 2018 decision finding that Gibraltar's corporate tax exemption regime for interest and royalties, which no longer applies, was illegal under EU State aid rules ({News-2018-12-21/A/5-previous coverage}). In the decision, the Commission found that the exemption and related rulings were designed to attract multinational companies to Gibraltar and effectively reduced the corporate income tax for a limited number of companies belonging to multinational groups, which provided a selective advantage that violated EU State aid rules.