The European Commission has announced its decision finding that Gibraltar's prior corporate tax exemption for interest and royalties, as well as five related tax rulings, are illegal under EU State aid rules.
The exemption for interest and royalty income was introduced in the Income Tax 2010, which entered into force on 1 January 2011, although subsequent amendments subjected interest to corporate income tax from 1 July 2013 and subjected royalties to tax from 1 January 2014. During the ti…