Gibraltar

A company will be considered resident in Gibraltar if the management and control of its business is exercised from Gibraltar or from outside Gibraltar by persons who are ordinarily tax resident in Gibraltar.

The location of central management and control will be established under legal principles laid down in the United Kingdom (UK) and is the place of the highest form of control and direction over a company's affairs, as opposed to decisions on the day-to-day running of the business.

Permanent establishment (PE)

The term "permanent establishment" is not used in Gibraltar's domestic tax law. It only appears in the double tax agreements between Gibraltar and the United Kingdom, where it follows the OECD Model Convention.

The Income Tax Act 2010 taxes only income that is "accrued in and derived from" Gibraltar. This is interpreted based on where the income generating activities physically take place, not on the existence of a fixed place of business or permanence.

Unlike PE rules, no minimum duration or degree of permanence is required. Even short-term or one-off activities can trigger a tax liability if they occur in Gibraltar.