| | |  | Last Updated: Wednesday, February 27, 2008 |  | | | Online Gambling Operators in Gibraltar Can Breath Freely
- Thursday, 28 Sep 2006
During the past couple of years, things haven't been so good for the online gambling companies in Gibraltar. The present tax regime in Gibraltar (which lets off company tax) was about to be eliminated by the European Commission. According to the European Commission, the current tax rules gave the companies in Gibraltar a not so fair advantage over companies based in other countries. Online gambling companies of Gibraltar would especially suffer from the possible tax regime change, as they would have to pay 30% tax.
Nonetheless, a new European Court decision has provided a huge relief for the online gambling industry there. As the 1969 constitution of Gibraltar's provides the region financial autonomy, the attractive tax regime will continue for the local online gambling companies. A finance director of a big online gambling firm said in an interview that he believes the latest judgment had removed the risk that gambling companies based in Gibraltar would have to pay the full 30% tax rate.
He said: "It's effectively removed one of the risks associated with the replacement tax regime that will come into effect at the end of 2010. We expect a low-cost tax regime that's non-discriminatory to take its place when the tax-exempt scheme is phased out." The online gambling industry in general had a few problems lately, with the US government arresting some of the major gambling industry executives and the attempt to move an anti-online gambling bill. Let us all hope that the future of the online gambling companies will be brighter.
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