---
name: gi-individual-income-tax
description: "Prepare an ordinary individual income-tax comparison for the year 1 July 2026 to 30 June 2027. Category 2, HEPSS, pension cases, frontier-worker treaty residence and special deductions require separate review. This source-cited draft supports preparation of reviewable working papers using the stated periods, evidence requirements and computation examples. Retain source evidence and effective dates; unresolved points and professional review remain explicit. Use the linked official materials when checking a case, and obtain a qualified local review before filing or making a payment. Read the explicit exclusions before applying its calculations to different facts."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/gi-individual-income-tax"
  jurisdiction: "GI"
  tax_year: "2026"
  last_updated: "2026-10-23"
  authored_by: "Ryan Duguid"
  trust_label: "Accountant-authored"
  review_status: "pending_review"
---

# Gibraltar individual income tax: ordinary assessment v0.1

> **Source-cited draft.** Professional review is pending. Figures are limited to the periods and assumptions below. This Guide prepares working papers; it is not authority to file or pay.

## Scope

Prepare an ordinary individual income-tax comparison for the year 1 July 2026 to 30 June 2027. Category 2, HEPSS, pension cases, frontier-worker treaty residence and special deductions require separate review.

Sources were accessed on 22 October 2026. A dated rate table controls its stated period; an undated guidance page does not prove that all later amendments have been incorporated.

## Residence and filing intake

Section 74 defines ordinary residence using at least 183 days in a year of assessment or presence in a year within three consecutive years whose total exceeds 300 days. Any part of a day counts. Record all three years, not just the current one. Treaty residence requires a separate conclusion. [Income Tax Act 2010, s74](https://www.gibraltarlaws.gov.gi/legislations/income-tax-act-2010-2627/download).

Collect employment, self-employment, pensions, rents, distributions, foreign-tax evidence and allowance documents. Determine the charging provision for each item before adding it to the calculation. A residence result does not establish the treatment of every income category.

## Rate comparison

The Income Tax Office displays these ordinary bands:

| System | Marginal bands |
|---|---|
| ABS, taxable income after allowances | First £4,000: 14%; next £12,000: 17%; remainder: 39% |
| GIBS, gross assessable income at most £25,000 | First £10,000: 6%; next £7,000: 20%; remainder: 28% |
| GIBS, gross assessable income above £25,000 | First £17,000: 16%; next £8,000: 19%; next £15,000: 25%; next £65,000: 28%; remainder: 25% |

Source: [Income Tax Office, “Charge to Tax”](https://www.gibraltar.gov.gi/income-tax-office). Confirm the period-specific legislation before final use; the page also contains undated relief figures.

## Computation working paper

1. Establish gross assessable income and classify each proposed allowance or deduction.
2. Select the correct GIBS table using gross assessable income. Do not treat the £25,000 switch as an additional band.
3. Apply each marginal rate only to its slice. Separately compute ABS on the reviewed taxable-income base.
4. Apply only documented credits and special adjustments after confirming eligibility. Keep a separate column for them; the examples below exclude them.
5. Compare the completed liabilities, then reconcile withholding and payments. A lower preliminary subtotal is not a final assessment.

**Arithmetic examples, before credits and with the stated bases:** GIBS gross/base £40,000 gives £2,720 + £1,520 + £3,750 = **£7,990**. ABS taxable base £20,000 gives £560 + £2,040 + £1,560 = **£4,160**. These use different assumed bases and are not a comparison for one taxpayer. At the GIBS switch, test £25,000 and £25,001 separately; do not smooth a discontinuity without a sourced adjustment.

## Employment and source conflicts

New employees supply identification and Terms of Engagement; an employee changing jobs also supplies the previous P7A. Without a code, the employer deducts 20%. [PAYE registration guidance](https://www.gibraltar.gov.gi/income-tax-office/individuals-and-employees/paye).

**Release gap:** that PAYE page labels its calculator 2026/27 but links to `Tax Calculator 2025-2026.xls`. Its allowance table is expressly 2025/26. Neither is treated here as verification of the complete 2026/27 relief calculation. Resolve the effective relief schedule and current personal-return deadline before using this as a filing computation.

## Self-checks and output

- Retain the relevant source version, the applicable period and the facts establishing scope.
- Reconcile every input to the client's records; keep estimates separate from actual amounts.
- Recompute the example and boundary cases before applying the method.
- Record exclusions and unresolved points explicitly. Do not convert a missing source into an exemption.
- Deliver a calculation, evidence list, filing calendar and reviewer questions. Record the exact revision reviewed.

## Disclaimer

General tax and accounting reference material only. These drafts have not been professionally attested. A qualified professional in the relevant jurisdiction must check the facts, current law, elections and deadlines before anyone files, pays or acts on an output.

> Contributed by Ryan Duguid.

<!-- openaccountants-cta-block -->

---

## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
version (and the professional behind it) is at
[openaccountants.com](https://www.openaccountants.com).

- Use it in your AI: https://www.openaccountants.com/connect
- Meet the accountants: https://www.openaccountants.com/network

> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-23. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `gi-individual-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/gi-individual-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.