Tax and Accounting Regulations

Gibraltar Non-resident Company will not be liable to Gibraltar taxation, including income tax and estate duty.

Non-resident status:

  • Company should be owned by non-residents
  • Company should be controlled by directors who reside and hold board meetings outside Gibraltar
  • No trading and business activities in Gibraltar

Filing of accounts

Annual accounts must be drawn up in accordance with the Companies Act 1999 and must give a true and fair view of the Companies assets, liabilities, financial position and profit or loss. The Act prescribes the accounting principles to be observed in preparing the annual accounts, the layout of the balance sheet and profit and loss account and the content of the notes to the accounts.

Filing of accounts ‐ companies are classified as small, medium-sized or large. Documents to be filed at the Companies Registry vary according to their classification:

  • Large companies ‐ to file full accounts including the balance sheet, profit and loss account, notes, directors’ report and auditors’ report
  • Medium-sized companies ‐ filing as for large companies except that the profit and loss account may be in abridged format
  • Small companies – required to file abridged balance sheet only

Definitions

Companies are classified by size according to the following parameters

 SmallMedium-sizedLarge
Net Turnover (pro-rated if more than or less than a year) up to £6.5 million up to £25.9 mill over £25.9 mill
Balance sheet total up to £3.26 million up to £12.9 mill over £ 12.9 mill (total assets)
Average number of persons employed up to 50 up to 250 over 250

Basically a company must fall within two out of three parameters in the financial year in question and the preceding year in order to be classified as small or medium‐sized. However, if a company exceeds or ceases to exceed the limits of more than one of the parameters it will continue to qualify for the relevant year unless it occurs in two consecutive years. For a newly incorporated company the conditions need only be met in its first financial year.

Filing due dates

The relevant documents must be filed within 13 months of the financial year end in the case of a private company and 10 month of the financial year in the case of a public company.

If the financial year‐end is the company’s first then the period allowed is the greater of 18 months from the first anniversary of the incorporation of the company or 13 months from the end of that financial year.

If a company chooses the 31st of March 2001 as the beginning of its financial year, its financial year ends on the 30th March 2002 and it then has 13 months to file the accounts. It has till the end of April 2003 to file accounts.

If company fails to file accounts it may be subjected to penalties.

If company doesn’t pay penalties, it may be proceeded against for the offence of failure to comply with a requirements of Company Act.

Take the next step, we are here to help.

Register a Gibraltar company.
Open a Gibraltar bank account.

  Resources:

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

The financial world is undergoing a technological revolution, with approximately 3 trillion financial deals entered into using digital ledger technology (DLT) and smart contracts within the next five years.

FATCA: Foreign Financial Institutions & NFFE’s

FATCA: Foreign Financial Institutions & NFFE’s

The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, was implemented to able foreign financial Institutions and certain other non-financial foreign entities to report on the foreign assets held by their US-based account holders or be subject to withholding tax on the relevant payments.

ICOs: A Smart Business Decision or Just a Risky Investment?

ICOs: A Smart Business Decision or Just a Risky Investment?

There are many financial experts voicing their concerns over ICOs being too much of a risky investment, however should we be so quick to dismiss ICOs as a legitimate vehicle? ICOs can be used as a substitute for Venture Capital funding due to parallels in the phase of company’s lifespan and risk profiles, which give potential opportunities for future start-ups and companies.

How Initial Coin Offerings Differ from Initial Public Offerings

How Initial Coin Offerings Differ from Initial Public Offerings

Since the hectic and intense ecosphere of the cryptocurrency ventures conception, a new sphere has caught investors’ attention from all over the world, being coined ICOs or Initial Coin Offerings.

Reasons for the Prevalent Misappropriation of Public Funds by Officials in CIS Countries

Reasons for the Prevalent Misappropriation of Public Funds by Officials in CIS Countries

Thorough analysis of the nature, content and determinants of the offence of misappropriation of public funds by officials, it gives grounds to reach the conclusion that a lot of different reasons somehow ‘provoke’ and ‘give the possibility’ to commit this offence.

Notional Interest Deduction: A Useful Tool for Cyprus Companies

Notional Interest Deduction: A Useful Tool for Cyprus Companies

The corporate income tax rate of a Cyprus-resident company is 12.5% on its global taxable revenue, with unilateral credit for related foreign tax suffered. Moreover, non-Cyprus residents are not liable to pay Cyprus withholding taxes on payments. Frequently, the effective corporate tax rate is much lower, or even as low as nil, due to various tax exemptions and allowances.

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

The recent implementation and increasingly stringent tax developments globally can affect companies with offices in different countries; rendering them non-viable if certain factors are not carefully considered.

5 Important Considerations When Starting a New Business

5 Important Considerations When Starting a New Business

According to commercial regulations in many common law jurisdictions, Directors have a duty of care requiring them to act in good faith for the company’s best interest, and using reasonable consideration of all available options before acting.