all EU directives which apply to this sector. Insurance business in Gibraltar is licensed and controlled by the Commissioner of Insurance (who is also the Chief Executive Officer of the Financial Services Commission) and is responsible for administering the Act and its Regulations. The day-to-day supervision is carried out by the Head of Insurance Supervision. The United Kingdom government has agreed that Gibraltar has implemented the necessary standards with regards to the supervision of insurance companies which match UK practice. As a result, Gibraltar has the approval from the UK government to take advantage of the Single European Passport for insurance. This means that an insurance company licensed in Gibraltar can, with the approval of the Commissioner of Insurance, do business in EEA states either by setting up a branch in those states or by providing insurance from Gibraltar to residents of those states. The fiscal and legal advantages of using Gibraltar as a jurisdiction for settingup and administering captives and other types of offshore insurers include the following: • Gibraltar insurers can underwrite risks in EEA states direct; • Insurance companies are subject to Corporation tax at the rate of 10% on profits from income accrued and derived in Gibraltar. • Gibraltar possesses local insurance expertise together with a well developed legal, accounting and banking infrastructure; • Stamp duty of £10 on nominal share capital, whether on initial creation or subsequent increase; • Legal system is based on English common and statute law, with variation enacted by local statutes; • Official language is English, but the local population is bi-lingual, also speaking Spanish; • The Gibraltar cost base is highly competitive. The annual license fee ranges from £4,745 to £29,750 depending on the type of business carried out; • There are no job quota requirements for insurance companies or managers; • Specialist personnel may apply for a preferential tax status (see Section 5.11.4 on High Executives Possessing Specialist Skills); • The official currency is Sterling and there are no exchange controls. The number of registered insurance companies in Gibraltar has increased
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