Comparative Guides
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Results: 4 Answers
Corporate Tax
3.
Investment in capital assets
3.1
How is investment in capital assets treated – does tax treatment follow the accounts (eg, depreciation) or are there specific rules about the write-off for tax purposes of investment in capital assets?
 
Gibraltar
Although depreciation is included in the accounts, it is not considered a tax-deductible expense. This is nevertheless compensated by the following capital allowances:

  • The first £30,000 of qualifying expenditure on plant and machinery (including fixtures and fittings) acquired in a year of assessment is fully deductible, with the balance deductible at the rate of 15% per annum on a reducing balance basis.
  • The first £50,000 of qualifying expenditure on computer equipment (including software) is fully deductible, with the balance deductible at the rate of 15% per annum on a reducing balance basis.
  • Expenditure on motor vehicles which does not qualify as plant and machinery does not qualify for a first-year allowance, but is deductible at the rate of 15% per annum on a reducing balance basis.
For more information about this answer please contact: Emma Lejeune from ISOLAS
3.2
Are there research and development credits or other tax incentives for investment?
 
Gibraltar
There are currently no specific research and development credits or incentives in Gibraltar. However, there are certain incentives, as follows:

  • In order to encourage private development in Gibraltar, promoters and developers of approved projects are offered certain development incentives, such as tax relief, import duty and rates relief. In order to qualify, the project must be a new project that is for the economic benefit of Gibraltar and that aims to:
    • create a tangible immovable asset in Gibraltar;
    • provide units or housing;
    • afford new employment opportunities; or
    • materially improve the economic or financial infrastructure of Gibraltar.
  • For taxpayers with an interest in a building situated in Gibraltar, an allowance is available for approved expenditure on the painting, decorating, repair or enhancement of the frontage of the building.
For more information about this answer please contact: Emma Lejeune from ISOLAS
3.3
Are inventories subject to special tax or valuation rules?
 
Gibraltar
No.

For more information about this answer please contact: Emma Lejeune from ISOLAS
3.4
Are derivatives subject to any specific tax rules?
 
Gibraltar
No.

For more information about this answer please contact: Emma Lejeune from ISOLAS