Gibraltar

Before April, 2000 non-resident and exempt Gibraltar companies were not subject to income tax and besides there was no requirement for filing any financial reports. However, now under the Companies (Accounts) Ordinance, 1999 all the limited liability companies must file financial reports. This being said only for non-resident and exempt companies qualified as “small” there is no obligation to get the accounts audited. Companies that meet during a financial year two of the below conditions are deemed small: turnover not exceeding 4.8 million Gibraltar Pounds, assets not exceeding 2.4 million Gibraltar Pounds, number of employees not exceeding 50.

Accounts are subject to filing within 13 months (10 months for public companies) from the financial year end. A penalty in the amount of 100.00 Gibraltar Pounds is imposed on a company failing to file its accounts on time. In case the above penalty is paid, the accounts due date is postponed for another 12 months. In case the company fails to pay the penalty on time, the company and its directors may become subject to criminal proceedings.

Unlimited companies do not have to file any reports, except for the cases when companies owners are personally liable for the company’s debts.

Gibraltar resident companies are subject to income tax. Basic income tax rate is 35%. However, in case the amount of a company taxable income does not exceed GIP 35 000.00 and less than 20% of this amount is formed by residual income (interest, dividends, royalties, rentals etc.) the tax rate is reduced to 20%. For cases when the amount of taxable income ranges between GIP 35 000.00 and GIP 105 000.00 the tax rate varies from 20% to 35%.

Income tax rate applicable to Qualifying Companies varies from 2% to 5% in case no income was transferred to Gibraltar; for any other cases the income tax rate varies from 6% to 17%. The same tax rates are applicable to payments made to the company directors and other annual payments (dividends).

Income received by Holding Companies from sources other than investment activities is subject to income tax at the standard rate of 35%. Income generated by investment activities is subject to zero-rate tax. Capital transfer tax at the rate of 1% is applicable to such type of companies.

Capital gains tax and VAT are not charged in Gibraltar.