Brussels, 18/02/2005 (Agence Europe) - The United Kingdom has agreed to do away with the taxation regime on “exempted companies” by 2010, as requested by the Commission mid-January after lengthy negotiations (see EUROPE of 20 January). European Commissioner Neelie Kroes believes the abolition of the taxation regime on exempted companies in Gibraltar is a new major step towards eliminating harmful fiscal practice that violates the rules of the EC Treaty on State aid. The regime, which provides for an exempted company to be subject to a standard rate of taxation (between EUR 350 and 500), when the normal rate of taxation is 35% in Gibraltar, should have been dismantled, however, since 1 January 2003. This measure had even been identified by the Primarolo Group as one of the 66 unfair taxation regimes listed by this working group in 1999.
“The official notification of the United Kingdom arrived this morning (Friday)”, the Competition Commissioner's spokesperson confirmed, specifying that the maximum number of companies able to benefit from the system in Gibraltar until 2010 at the latest is 8464.