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.