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:

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.

Cyprus tax department releases new guidance on CRS deadlines and the online portal

Cyprus tax department releases new guidance on CRS deadlines and the online portal

The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).