Her Majesty's Government of Gibraltar is very pleased to announce that the OECD has welcomed and agreed to Gibraltar becoming a full member of the Inclusive Framework on Base Erosion Profit Shifting (BEPS).
The Chief Minister, the Hon Fabian Picardo QC confirmed Gibraltar’s membership in a letter to the OECD Secretary General last week.
This follows a significant and intensive period of liaison between Gibraltar officials and those of the OECD in which it became apparent that Gibraltar's membership of the BEPS framework was blocked by Spain.
The Spanish Government agreed to lift its veto on Gibraltar's membership of the BEPS framework upon the agreement of the International Tax Treaty between Gibraltar and Spain.
Whilst awaiting a decision on membership, Gibraltar has, nonetheless, been complying with the BEPS standard via the transposition of the relevant EU Directives that bring into effect the content of OECD BEPS action points such as country by country reporting and the exchange of tax rulings.
The Chief Minister, Fabian Picardo said:
“Our joining the OECD BEPS framework as a full and equal member is another demonstration of Gibraltar’s commitment to international standards of tax transparency and cooperation. It is also a tangible deliverable resulting from the conclusion of the International Tax Treaty with Spain.
The public should not underestimate the amount of work that went on behind the scenes to ensure this has come to fruition after a very significant period of time. In particular, the tax treaty that was signed with Spain was a key to ensuring distinct progress in this matter and I would therefore like to reiterate my thanks to the Financial Secretary and to the Commissioner of Income Tax. The work of Albert Mena, John Lester and Terrence Rocca on this has been remarkable. They have worked alongside my core Brexit negotiating team and Albert Isola's Finance Centre team to deliver this excellent result.
Furthermore, this once again bolsters Gibraltar's unimpeachable reputation as a robust and reputable financial centre as we form part of another international forum on good tax governance, thereby shielding us from inclusion on any international blacklists on BEPS going forward, which is hugely important for the continued success of the finance centre.
This will undoubtedly assist in underpinning Gibraltar’s future economic success and is simply another occasion when this Government actively ensures the protection of Gibraltar and its people; more so in these challenging times as the United Kingdom prepares to leave the European Union.”