that of the certificate holder so that no additional tax will be payable on that income. Finally, there are tax advantages for individuals with Category 2 status in connection with Trusts (see section 5.12 below). 5.11.4 - High Executive Possessing Specialist Skills - HEPSS The tax payable by a HEPSS is limited to the first £120,000 of earned income (maximum tax payable of £29,940). The Gross Income Based System is applied to HEPSS Individuals. The individual must possess skills or experience which are not available in Gibraltar and assessed as necessary to promote and sustain economic activity of particular economic value to Gibraltar. The person must also occupy a high executive or senior management position, earn more that £100,000 per annum and have approved residential accommodation available for their exclusive use, and their families, in Gibraltar. Moreover the person may not have been resident or employed in Gibraltar during the three years prior to the year in which the application is made (the FCD may, however, waive this requirement). There is a non-refundable fee of £1,000 for the issue, or renewal, of the certificate. 5.12 - Trusts For general information on Trusts see section 2.4. As from 1 January 2011 a trust is tax resident in Gibraltar if one or more of the beneficiaries is ordinarily resident in Gibraltar or the class of beneficiaries may include an ordinarily resident person or the issue of an ordinarily resident person. The residency status of the trustees or settlor is, in itself, not relevant. An individual who has Category 2 status or the spouse or child of such an individual (provided the individual has elected to include them under the Category 2 Rules) is not deemed to be tax resident in Gibraltar for the purposes of determining the taxation of a trust or of the beneficiaries. A trust which is not tax resident in Gibraltar is taxable only on income which accrues in or is derived from Gibraltar. By contrast, a trust which is ordinarily resident in Gibraltar is taxable on its worldwide income. As for individuals, non- trading interest income, dividends from listed companies, non-Gibraltar property based rental income and capital gains are not taxable in Gibraltar.
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