Gibraltar Companies
The principal factors to bear in mind about Gibraltar companies are as follows:
Gibraltar companies are not always considered resident for tax in Gibraltar. If a Gibraltar Company is able to establish that it is "Non-Resident Controlled", the Gibraltar Tax Authorities may decide to treat such a Company as not liable for taxation in Gibraltar.
Such "non-liability" may be determined on the following basis:
- That the Beneficial Owners of a Company are non-residents of Gibraltar.
- That the Directors and Shareholders of the company are non-residents of Gibraltar or that their Beneficial Interest is being channelled through professional licensed Corporate Directors and/or Nominee Shareholders.
- That the company ONLY carries on business EXCLUSIVELY outside Gibraltar, does not establish a physical operational presence in this jurisdiction, and has no Gibraltar-source income.
In addition to the above, recent Budget measures announced by the Gibraltar Government may also be factored into any professional advice:
- Taxation is abolished on dividends paid by one Gibraltar Company to another Gibraltar Company.
- Taxation is abolished on dividends and interest paid by a Gibraltar Company to a non-resident recipient.
- The requirement to withhold tax on dividends in accordance with Section 39 of the Gibraltar Income Tax Ordinance is abolished.
- Stamp Duty on all transactions other than those relating to property situated in Gibraltar is abolished.
Quite apart from the above, it is also useful to note that there is no Capital Gains Tax or Inheritance Tax applicable in Gibraltar.
In other words, the "non-resident control" or "non-liability" of a Gibraltar company for tax in Gibraltar, may be determined on the basis that the Beneficial Ownership of the Company is non-resident of Gibraltar, and on the strict conditions that the company ONLY carries on business EXCLUSIVELY outside Gibraltar and that it has no Gibraltar-source income.
Other issues affecting Gibraltar companies that are worthy of note are:
- The standard incorporation time for Gibraltar companies is 4 to 5 days.
- Gibraltar companies will NOT be designed to accommodate Bearer Shares.
- The identity of the Directors and Shareholders of Gibraltar companies are required to be filed at the Gibraltar Companies Registrar although these may be Corporate Directors and/or Nominee Shareholders.
- A minimum of one Director and one Shareholder (corporate or individual) are required to be appointed to a Gibraltar company. The Director and the Shareholder may be the same person or corporation.
- Gibraltar companies are required to identify commencement dates for their financial years during the period 1st April to 31st March, and to file accounts at the Gibraltar Companies Registry relating to their chosen year-long fiscal period within 13 months from the chosen financial year end. Companies with a turnover of less than GBP £4.8 million per annum are not required to file audited accounts, and are able to file Balance Sheets signed by the Directors of the Company instead. Please click on our weblink below for further information on this requirement: