Gibraltar Accounting Package: €650
The main drivers of economic growth in Gibraltar can be attributed to general trade, the provision of financial and communications services (including electronic games), tourism and maritime activities, and Gibraltar companies can also be grateful for the ease with which commercial accounts can be opened.
Here are a few other practical features that make the country stand out in the international marketplace:
- The Exempt Certificate which gives Gibraltar a 25-year guarantee of tax exemption;
- The only financial centre in the EU exempt from value added tax (VAT).
However, together with a United Kingdom Overseas Territory, Gibraltar applies similar reporting standards to those of the United Kingdom, as the company must submit an annual return, annual accounts and tax returns.
We provide full and partial online accounting services. Trusting us with the numbers will give you more free time to develop your business. Our accounting team will ensure that you meet your reporting requirements and comply with local legislation.
Companies in Gibraltar, you may encounter the following delays:
- Income tax and social insurance must be deducted in accordance with the Individual Tax Code and remitted to this office by the 15th of each month;
- Declaration and contribution forms must be submitted by July 31 of each fiscal year;
- A complete income tax return must be submitted within nine months of the end of their financial period.
Accounting services provided by the Business Finance International accounting team also include
- Preparation of financial reports;
- Creation and submission of annual financial statements;
- Submission of the report to the tax authorities;
- Virtual assistance for any question concerning taxation in Gibraltar;
- Other accounting services.
* – The amount indicated is a starting price for 1 year of professional accounting services.
Custody of accounts for a Gibraltar company
To make sure your business is in good standing, we can prepare and submit business accounts, annual returns and tax returns on your behalf.
A chartered accountant from our team will assist you in all matters related to taxation and accounting.
Corporate tax return for Gibraltar company
A company which is incorporated in Gibraltar but does not carry on any business in Gibraltar is not taxed in Gibraltar: but it must register for corporation tax and must file an annual tax return with annual accounts.
Fees for tax services:
Appointment as fiscal agent.
Application for TIN (tax identification number)
CT1 filing and submission of annual accounts (annual tax return)
Previously, a company was only required to file a tax return and accounts if it had taxable income in Gibraltar. The law now extends the annual filing requirements to every companies registered in Gibraltar. This includes the filing of accounts, even where the company has not no income and the accounts will be dormant.
There are several advantages to filing tax returns. ALL companies must now be assigned a tax identification number (TIN), which is particularly useful for commercial companies when opening a bank account, making an investment or demonstrating to business partners or authorities that the company is registered for tax purposes.
From your accounting records, we can draw up your annual accounts.
These are compiled in accordance with the Gibraltar Companies Accounts Ordinance 1999 as amended, and in accordance with international generally accepted accounting practice with
- balance sheet
- profit and loss for the period
- directors' report
- notes to the accounts
Corporate tax compliance in Gibraltar
On 1 January 2016, Gibraltar's corporate tax laws were amended and the Income Tax (Amendment) Act 2015 was enacted. These changes now affect all companies, whether trading or managed from Gibraltar or not.
This legislation amends the Income Tax Act 2010 in a number of areas, including the requirement for companies to file tax returns, which now includes the requirement for every company in Gibraltar to have a tax identification number (TIN).
Previously, a company was only required to file a tax return and accounts if it had taxable income in Gibraltar. The Act now extends the annual filing requirements to all companies registered in Gibraltar. This includes the filing of accounts, even where the company has no income or assets.
These accounts must be filed with the tax authorities within nine months of the end of the financial year. It is imperative that the tax return and accounts be filed; financial penalties are imposed for late filing and the company will lose its status as a member in good standing.
Our comprehensive accounting service combines tax compliance with the production of company accounts.
Registration of corporate tax in Gibraltar
Income earned in Gibraltar or derived from Gibraltar will benefit from an corporate income tax of 10%. Income from elsewhere will not be subject to corporate tax and the tax return will indicate that no income is taxable.
Form CT3 to be completed to register for corporation tax requires:
- Statutory information on the company
- Business address
- Activity details
- Details on when the company will prepare the accounts
Details of the names and addresses of shareholders and directors will also need to be provided, as we need to disclose information showing that the parties are not resident in Gibraltar.
The corporation will then receive a Tax Identification Number (TIN), and subsequent correspondence with the income tax office will be referenced to this number.
The TIN is particularly useful for trading companies when opening a bank account, making an investment or demonstrating to business partners that the company is registered for tax purposes.
Tax representative for a Gibraltar company
As part of the initial work, a company should appoint a professional tax representative.
Accounting and taxation
A company incorporated in Gibraltar must register for corporation tax and submit tax returns, and file company accounts in the format used in the United Kingdom. Although no tax is payable in Gibraltar, if the company is elsewhere,
- We advise you on what is needed; and make sure you keep the correct records for your business from the start
- We obtain for you the obligatory tax identification number
- We keep your business in good standing by preparing and filing statutory accounts in the required format and on time.
- We ensure that tax returns are filed on time and registered by the tax authorities.
Gibraltar Corporation Income Tax Return
After the accounts are filed, we have to file the Corporation Income Tax Return (CT1).
In most cases we simply have to file accounts and prove that the company is not trading in Gibraltar.
That means we have to:
- Obtain proof of the business address of the company
- Obtain evidence of the nature of the business undertaken
- Lodge accounts for the selected account period on the original CT3
Note that by the time the tax return is filed, we will generally have already insured:
- Appointment of a tax representative for the company
- Due Diligence in Appointment
Form CT3 asks for the name and occupation of the representative. In our case, this is a Chartered Accountant of the Institute of England and Wales.
Subsequently file a copy of the accounts in accordance with the Gibraltar Companies Accounts Ordinance 1999, as amended, and in accordance with international generally accepted accounting practice with:
- Balance sheet
- Profit and loss for the period
- Directors' Report
- Notes to the financial statements
Compliance with OECD rules and International Financial Reporting Standards
Gibraltar complies with the OECD requirement which has produced a white list of countries that comply with these rules, Gibraltar has complied with these rules.