Editing Economy of Gibraltar (section)

==Finance==
Until [[Brexit]] Gibraltar was a constituent part of the [[European Union]] as a [[Special Member State territories and the European Union#Gibraltar|Special Member State territory]], having joined the [[European Economic Community]] with the United Kingdom in 1973, under the provisions of the [[Treaty of Rome]] relating to European dependent territories. However, it is exempt from the [[Common external tariff]], the [[Common Agricultural Policy]] and the requirement to levy [[Value added tax]].<ref>[http://www.gibraltar.gov.gi/latest_news/topical_speeches/status_in_eu.htm Gibraltar's EU status] {{webarchive |url=https://web.archive.org/web/20090917105438/http://www.gibraltar.gov.gi/latest_news/topical_speeches/status_in_eu.htm |date=17 September 2009 }}</ref>

[[Financial institution]]s operating in Gibraltar are regulated by the [[Gibraltar Financial Services Commission]].<ref>[https://web.archive.org/web/20070903205444/http://www.fsc.gi/fsc/commission.htm Gibraltar Financial Services Commission]</ref>
Gibraltar has had a stock exchange since 2014, the [[Gibraltar Stock Exchange]].<ref>{{Cite web |url=https://www.gsx.gi/ |title=Gibraltar Stock exchange |access-date=9 June 2015 |archive-url=https://web.archive.org/web/20150402093410/https://www.gsx.gi/ |archive-date=2 April 2015 |url-status=bot: unknown}}</ref>

Subject to notifying the EU Commissioner, who must be satisfied that they meet certain criteria in accordance with the relevant [[Directive (European Union)|EU Directive]], Gibraltar-licensed or -authorised financial institutions can provide services throughout the EU and [[European Economic Area]] without having to seek separate licences or authorisation in the host [[Member State of the European Union|Member State]]. This is known as the ''passporting'' of [[financial services]].<ref>[https://web.archive.org/web/20070928041815/http://www.fsc.gi/gib/eea.htm Gibraltar Financial Services Commission - Overview]</ref>

In December 2008 in a landmark decision the [[European Court of Justice]] ruled that:<ref>{{Cite web |url=http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=EN&Submit=rechercher&numaff=T-211%2F04 |title=European Court of Justice ruling on regional selectivity |access-date=18 November 2019 |archive-url=https://archive.today/20120707143041/http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=EN&Submit=rechercher&numaff=T-211/04 |archive-date=7 July 2012 |url-status=dead }}</ref>

{{Blockquote|the Court finds that the competent Gibraltar authorities which have devised the tax reform have, from a constitutional point of view, a political and administrative status separate from that of the central government of the United Kingdom.}}

This allowed the implementation of a new low tax system which took full effect in 2010.

Referred to as an International Finance Centre,<ref>[https://web.archive.org/web/20070928041740/http://www.fsc.gi/press/article20112004.htm Gibraltar Financial Services Commission - Building a good reputation]</ref> Gibraltar was among 35 jurisdictions identified by the [[Organisation for Economic Co-operation and Development]] (OECD) as a [[tax haven]] in June 2000.<ref name=OECD>[[OECD]], March 2002 [http://www.oecd.org/document/59/0,2340,en_2649_201185_2074555_1_1_1_1,00.html Gibraltar Commits to Co-operate with OECD to Address Harmful Tax Practices]  {{webarchive|url=https://web.archive.org/web/20151015230752/http://www.oecd.org/document/59/0%2C2340%2Cen_2649_201185_2074555_1_1_1_1%2C00.html |date=15 October 2015 }}. Retrieved on July 2006</ref> However, the list's disclaimer states:<ref>[http://www.oecd.org/document/43/0,2340,en_2649_33745_36153067_1_1_1_1,00.html OECD issues a disclaimer on outdated report]  {{webarchive|url=https://web.archive.org/web/20070429033941/http://www.oecd.org/document/43/0%2C2340%2Cen_2649_33745_36153067_1_1_1_1%2C00.html |date=29 April 2007 }}</ref>

{{quote|That list should be seen in its historical context and as an evaluation by OECD member countries at a particular point in time of which countries met the criteria set out in the 1998 Report, Harmful Tax Competition: An Emerging Global Issue. More than five years have passed since the publication of the OECD list contained in the 2000 Report and positive changes have occurred in individual countries' transparency and exchange of information laws and practices since that time. The list has not been updated to reflect such changes.}}

As a result of having made a commitment in accordance with the OECD's 2001 Progress Report on the OECD's Project on Harmful Tax Practices, Gibraltar is not included in the OECD's list of uncooperative tax havens.<ref name=OECD/> It has also never been listed on the [[FATF Blacklist]] of uncooperative countries in the fight against [[money laundering]]. It may also be referred to as an [[offshore financial centre]], by international institutions such as the [[International Monetary Fund]] (IMF).<ref>[[IMF]], 4 June 2006 [http://www.imf.org/external/np/ofca/ofca.asp Offshore Financial Centers (OFCs): IMF Staff Assessments]. Retrieved July 2006.</ref>

However, in its April 2009 progress report, the OECD listed Gibraltar in the list of jurisdictions which, although committed, had not "substantially implemented" yet the internationally agreed tax standard.<ref>{{cite web|url=http://www.oecd.org/dataoecd/38/14/42497950.pdf |title=A progress report on the jurisdictions surveyed by the OECD global forum in implementing the internationally agreed tax standard - Progress made as at 4 October 2009 |access-date=1 January 2010 |date=4 April 2009 |work=OECD |publisher=Organisation for Economic Co-operation and Development |url-status=dead |archive-url=https://web.archive.org/web/20091001100240/http://www.oecd.org/dataoecd/38/14/42497950.pdf |archive-date=1 October 2009}}</ref> Following Gibraltar's signing of 12 additional [[Tax Information Exchange Agreements]] (TIEAs), as of October 2009, with jurisdictions including the UK, US and Germany,<ref>{{cite web |url=http://www.chronicle.gi/headlines_details.php?id=17495 |title=Gibraltar 'white-listed' by OECD |access-date=22 October 2009 |date=22 October 2009 |publisher=The Gibraltar Chronicle |archive-url=https://web.archive.org/web/20110927140904/http://www.chronicle.gi/headlines_details.php?id=17495 |archive-date=27 September 2011 |url-status=dead}}</ref> to sum 13, Gibraltar is currently listed in the OECD [[whitelisted gambling jurisdictions|"white list"]], and is considered a jurisdiction that has substantially implemented the tax standard. It therefore shares the same status as OECD member states such as the UK, the US, Spain or Germany.<ref>{{cite web |url=http://www.oecd.org/dataoecd/50/0/43606256.pdf |title=A progress report on the jurisdictions surveyed by the OECD global forum in implementing the internationally agreed tax standard - Progress made as at 20 October 2009 |access-date=22 October 2009 |date=20 October 2009 |work=OECD |publisher=Organisation for Economic Co-operation and Development |archive-url=https://web.archive.org/web/20091007012156/http://www.oecd.org/dataoecd/50/0/43606256.pdf |archive-date=7 October 2009 |url-status=dead}}</ref>

Fiscal advantages, including no tax on [[capital income]], are offered to a maximum of 8,464 offshore qualified companies [[Incorporation (business)|incorporated]] in Gibraltar.<ref name=OFF>[http://www.gibraltaroffshore.com/gibraltar-tax-exempt-company-changes.htm Gibraltar Tax Exempt Company Registration Changes] {{Webarchive|url=https://web.archive.org/web/20061206014044/http://www.gibraltaroffshore.com/gibraltar-tax-exempt-company-changes.htm |date=6 December 2006 }}. Retrieved on July 2006</ref> After an agreement with the European Union in 2005, this [[tax exemption|tax exempt]] regime is due to disappear on 31 December 2010.<ref name=OFF/>

A 2007 IMF report on the regulatory environment and [[anti–money laundering]] has once again endorsed Gibraltar's robust regulatory environment.
<ref>{{cite web | url = http://www.gibraltar.gov.gi/latest_news/press_releases/2007/118-2007.pdf | title = Publication of the IMF Evaluation on Gibraltar's Supervision of Banking, Insurance and Anti-Money Laundering Measures | author = Government of Gibraltar | access-date = 17 October 2008 | url-status = dead | archive-url = https://web.archive.org/web/20081118191855/http://www.gibraltar.gov.gi/latest_news/press_releases/2007/118-2007.pdf | archive-date = 18 November 2008}}</ref>

According to the report:<ref name="autogenerated1">[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Assessment_of_Financial_Sector_Supervision_and_Regulation..pdf] {{webarchive|url=https://web.archive.org/web/20090327121904/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Assessment_of_Financial_Sector_Supervision_and_Regulation..pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_on_Anti-Money_Laundering_and_Combating_the_Financing_of_Terrorism.pdf] {{webarchive|url=https://web.archive.org/web/20090327121918/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_on_Anti-Money_Laundering_and_Combating_the_Financing_of_Terrorism.pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Insurance_Core_Principles.pdf] {{webarchive|url=https://web.archive.org/web/20090327121913/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Insurance_Core_Principles.pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Basel_Core_Principles.pdf] {{webarchive|url=https://web.archive.org/web/20090327121929/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Basel_Core_Principles.pdf|date=27 March 2009}}</ref>

{{quote|Gibraltar has a well-regulated financial sector. The Gibraltar authorities are concerned with protecting the reputation and integrity of Gibraltar as a financial center, and are cognizant of the importance of adopting and applying international regulatory standards and best supervisory practices. Gibraltar has a good reputation internationally for cooperation and information sharing.}}

In 2008 Gibraltar was listed for the first time in the [[Global Financial Centres Index]] published by the [[City of London Corporation]]. [[Rock of Gibraltar|The Rock]] was ranked 26th in a list of 69 leading finance centres around the world based on an online survey of 1,236 business professionals, who provided a total of 18,878 assessments.<ref>[https://web.archive.org/web/20080312140423/http://www.cityoflondon.gov.uk/Corporation/business_city/research_statistics/research_publications.htm Global Financial Centres Index]</ref> In the most recent GFCI report of 2011, Gibraltar was ranked 63rd in the world, and 8th of the leading [[offshore financial centre]]s (OFCs).<ref>{{Cite web |url=http://www.zyen.com/GFCI/GFCI%209.pdf# |title=GFCI 2011 |access-date=4 July 2012 |archive-url=https://web.archive.org/web/20121128152601/http://www.zyen.com/GFCI/GFCI%209.pdf |archive-date=28 November 2012 |url-status=dead}}</ref>

The [[Tax Justice Network]] ranked Gibraltar at #43 out of 71 jurisdictions on its 2011 Financial Secrecy Index. Gibraltar's "secrecy score" was 78, equating to [[Banking in Switzerland|Switzerland]] in that category.<ref>{{cite web|url=http://www.financialsecrecyindex.com/2011results.html |title=2011 Results - Financial Secrecy Index |access-date=2013-08-12 |url-status=dead |archive-url=https://web.archive.org/web/20130828000235/http://www.financialsecrecyindex.com/2011results.html |archive-date=28 August 2013}}</ref>

Gibraltar was also ranked in the top 20 centres for [[e-readiness]], coming 20th after major capitals and leading offshore centres.<ref>[http://www.chronicle.gi/readarticle.php?id=000013083 Gibraltar Chronicle Story] {{webarchive |url=https://web.archive.org/web/20080614144921/http://www.chronicle.gi/readarticle.php?id=000013083 |date=14 June 2008 }}</ref>