Gibraltar's chief minister reduces corporate tax by 2%, which is now 33%, and pledges a flat, low rate by 2010

The Chief Minister has announced his plans for corporate tax reform in Gibraltar. He said: "By mid-2010 the Government will have introduced an across-the-board flat, low corporate tax rate. This will most probably be set at 10%, but in any event not higher than 12%. This will be similar to arrangements that already exist in Ireland, Cyprus, Malta and other EU Countries.

"In the intervening period ... I am today taking the first step in the process of reducing corporate tax rates in Gibraltar, by 2% for the year of assessment 07/08 from 35% to 33%, and with effect from the year of assessment 2008/09 by a further 3% from 33% to 30%. I would also signal the intention of a further reduction the year after that to 27%, in anticipation of the introduction of the flat low tax rate in 2010."