Income Tax Amendment Act 2015

Income Tax (Amendment) Act 2015

As from 1st January 2016, all Gibraltar companies are required by the above Act, to file an annual Tax Return with the Gibraltar Tax Office together with the annual accounts for the company. The previous rules only required a company to file accounts and Tax Returns with the Gibraltar Tax Office if they had income which was assessable for taxation in Gibraltar. These new rules do not distinguish between companies that may or may not be assessable for taxation in Gibraltar, but are not designed to overhaul any of the existing rules that allow certain types of income to avoid assessment for taxation in Gibraltar.

Accounts are required to be prepared on the following basis:

Large Companies

Full accounts including a balance sheet, profit and loss account, notes, director’s report and auditor’s report.

A large Company is defined by the Act if it meets any two of the following three parameters:
(1) Net turnover exceeds £36 million
(2) Balance sheet total (total assets) exceeds £18million
(3) Average number of employees in each year exceeds 250.

Medium Companies

Same as for large companies except that the profit and loss account may be in an abridged form.

A Medium Company is defined by the Act if it meets any two of the following three parameters:
(1) Net turnover should not exceed £36million
(2) Balance sheet total (total assets) should not exceed £18 million
(3) Average number of employees in each year should not exceed 250.

Small Companies

An abridged balance sheet only. (Please see Balance Sheet template attached).

A Small Company is defined by the Act if it meets any two of the following three parameters:
(1) Net turnover should not exceed £10.2 million
(2) Balance sheet total (total assets) should not exceed £5.1 million
(3) Average number of employees in each year should not exceed 50.

For accounting periods ending on or after 1st January 2016, every company registered in Gibraltar will have nine months from their financial year end, to file Tax Returns and returns of dividends with the Gibraltar Tax office. Failure to meet their deadline will result in the following penalties:

Failure to file tax returns within nine months:GBP £50
Failure to file tax returns within one year (3 months after deadline):GBP £300
Failure to file tax returns within fifteen months (6 months after deadline):GBP £500
These penalties are cumulative and can amount to as much as GBP £850 over 15 months.

FORM-A-CO (GIBRALTAR) LIMITED will be obtaining a Tax Identification Number (“TIN”) on behalf of all companies under its administration. However, as Director(s), of your Gibraltar Company it is your responsibility to ensure that your Company’s accounts are lodged with our office every year to enable us to prepare and file these Returns at the Tax Office on your behalf in good time.

This requirement is in addition to companies having to file annual accounts with Companies House, and FORM-A-CO (GIBRALTAR) LIMITED is willing to prepare and file the Tax Returns on behalf of your Company for an additional annual fee of GBP £150.

We are also pleased to offer you an accounting service for a minimum charge of GBP £250 per annum, to prepare corporate accounts for signature by the Board of Directors. The level of this fee will depend on the complexity of the work to be undertaken in the preparation of the accounts.

Whats New

See if there have been any changes since last year’s Gibraltar Government Budget resulting in any amendments to laws or procedures. Form-A-Co stays on top of these changes and provides regular updates here.

  • Price points
  • Legislation
  • Documentation

As we progress as a company that is intimate with government legislation and corporate requirements, we will keep you updated as and when things change

Jonathan's Bio

Summary

FORM-A-CO (GIBRALTAR) LIMITED was founded in 1989 to conduct the business of Company Formation and administration and all ancillary services. Jonathan’s role from the outset was to serve as the firm’s Manager, creating its product line and devising its services. Since that date, Jonathan has overseen the evolution of the business as the firm’s Managing Director to incorporate Trust and Marine administration into its range of products, and steering it through the various compliance and regulatory challenges arising from the application of Financial Services Regulation in Gibraltar as from 1993, with the establishment of the Financial Services Commission itself.To this day, Jonathan’s role is to oversee the management of the firm’s Company Formation and Trust Administration services (through FORM-A-TRUST (GIBRALTAR) LIMITED), and the incorporation of small businesses in Gibraltar to service the local economy, whilst retaining executive responsibility for all compliance and regulatory led initiatives for the firm. 

Experience 
  • Over 31 years working in Gibraltar’s Financial Services industry as Managing Director of a firm which is duly licensed by the Financial Services Commission to conduct Company Management and Trust Administration services. 
  • Registered with the Supreme Court to serve as a Commissioner for Oaths in Gibraltar. 
  • Licensed by the Financial Services Commission to provide Directorship services as an approved individual. 
  • Approved by the Financial Services Commission to serve as an EIF (Experienced Investor Fund) Director. 
  • Member of the Gibraltar Advisory Board of TFO Tax Strategies Limited – a Manchester-based business dedicated to wealth management and tax planning structures.
Charle's Bio

Summary

Charles joined FORM-A-CO (GIBRALTAR) LIMITED in 2012 after 30 years in the banking sector. He was responsible for the creation and development of Trust businesses at  Lloyds TSB  Bank Plc  and at SG Hambros  Bank & Trust. 

Charles is a Director of FORM-A-CO (GIBRALTAR) LIMITED with particular responsibility for  the  Trust Administration services (through FORM-A-TRUST (GIBRALTAR) LIMITED) as well as client relationships.

Charles brings an array  of skills and experience to the business and holds appointments in listed Companies.