Gibraltar: Draft legislation on new restriction on the use of tax losses in relation regulated financial services and licensable gambling activities
The bill would limit the amount of tax losses that can be offset to 50% of the taxable profits.
The Gibraltar Government published a bill that would implement a restriction on the use of tax losses for certain “designated persons,” which covers persons engaged in regulated activities as defined by the Financial Services Act and those involved in licensable activities under the Gambling Act, along with any connected persons as per the Income Tax Act 2010.
For accounting periods ending on or after July 31, 2024, the bill would limit the amount of tax losses that can be offset to 50% of the profits calculated according to Schedule 3 of the Income Tax Act 2010. The restriction would exclude tax losses incurred in any accounting period ending in the period from July 1, 2021, to June 30, 2023, which must be offset before losses incurred in other periods. The limitation does not apply to companies classified under Section 3 of the Insolvency Act 2011 that are designated persons and undergoing insolvency proceedings.
For more information, contact a KPMG tax professional in Gibraltar:
Darren Anton | darrenanton@kpmg.gi