Gibraltar tax resident companies are not taxable to income on a worldwide basis as in many other jurisdictions, but are taxable on income accrued in and derived from Gibraltar.
Gibraltar Corporate Income Tax
Gibraltar tax year
The tax year in Gibraltar commences on the 1st July and ends on the following 30th June each year.
Liability to tax in Gibraltar
Liability to Gibraltar taxation is generally based on income "accrued or derived" in Gibraltar.
Gibraltar tax resident Companies
A company is deemed to be "ordinarily resident" in Gibraltar if:
- The management and control of the company is in Gibraltar
- The management and control of the company is outside of Gibraltar, but those exercising management and control of the company are ordinarily tax resident in Gibraltar.
- In relation to investment companies, if the management and control is outside of Gibraltar, but is controlled by an ordinarily resident individual (as per the previous bullet point) control can include for the purposes of invesment companies if the ordinarily resident individual has power to secure by means of the holding of shares or the possession of voting power in or relation to that or any other company or by virtue of any pwers conferred by the articles of association or other document regulating that or any other company, that the affairs of that invesment company are conducted in accordance with that person.
Tax liability of Gibraltar tax resident companies
"Ordinarily resident " companies are liable to tax at a flat rate of 10%.
Tax liability of Gibraltar non resident companies
Companies not ordinarily resident in Gibraltar with no income "accrued or derived" in Gibraltar are not liable to Gibraltar income tax.
Withholding taxes
There is no withholding tax on dividends or on certain interest payments.
EU
Gibraltar is within the EU and has access to favourable EU directives.
VAT
There is no VAT or sales tax in Gibraltar.
Incorporation of a Company
If you need to incorporate a Gibraltar company or a company in another jurisdiction please do not hesitate to contact us so that we can put you in contact with a regulated company provider.