Gibraltar taxation provisions:
According to the legislative regulations passed on 1st January 2011, most Gibraltar companies are taxed on profits at the rate of 10% except for companies operating in the electricity, telecommunications, oil, energy and utilities sectors who are taxed at the rate of 20%. However, the same Law has preserved the regulations that make companies generating their entire income from sources outside of Gibraltar tax exempt. Such companies are not permitted to have staff in Gibraltar, their bank accounts must be with foreign banks and their shareholders and directors cannot be residents of Gibraltar.
The main criteria for taxation in Gibraltar is the place of actual management of the business of the company.
The income of non-resident companies with income from sources outside of Gibraltar is tax exempt:
- tax on profit, dividends, interest and royalties – 0%;
- capital gains tax – 0%;
- tax withholdings at source – 0%;
- VAT – 0%;
- wealth and inheritance tax – 0%.
In the place of taxes, non-resident Gibraltar companies pay a government levy of £200.
A special duty of 0.5% of the authorised capital is payable upon registration.
Double Tax Treaties:
Gibraltar does not maintain any Double Tax Treaties.
For detailed information on incorporation and administration of Gibraltar companies please contact our office.