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Corporate

Income Tax Act 2010 Guidance Notes

• Companies
• Classes of Expenditure allowed as Deductions
• Payments on Account Table - Schedule 10
• Guidance for split year treatment

Returns For Accounting Periods Ending On Or After 1st January 2011

• CT1 - Corporate Tax Return
• Guidance Note CT100: How to complete Form CT1 - Corporate Tax Return
• CT2 - Return of Dividends
• CT2A - Additional Sheets
• CT2B - Additional Sheets
• CT2C - Additional Sheets

Corporate

• View Standard Industry Codes
• CT3 - Company Registration Spreadsheet
• CT3 - Company Registration Form
• 'CT3A - Authorising your Agent
• 'Guidance Note CT101: How to Complete Form CT3A - Authorising your Agent
• CT4 - Claim to reduce payments on account for an accounting period
• 'Country by Country Reporting - Notification Template
• 'Explanatory Notes on Country by Country Reporting Obligations
• Form ORC/1 - Application for Ordinarily Resident Certificate for a company
• Form CCC-1 - Request for Certificate of Compliance

Questions & Answers

Q. What is the standard rate of Corporation Tax?

A. Most companies in Gibraltar are liable to Corporation Tax at a rate of 10%. Utility companies or companies enjoying a dominant market position are liable at a higher rate of 20%. Included in the latter are companies providing electricity, fuel, water and telephony services.  

Q. When does a company need to register with the Income Tax Office?

A. With effect from 1 January 2016, a company which is registered in Gibraltar under the Companies Act 2014, or has assessable income in Gibraltar under the Income Tax Act 2010, is required to register in Gibraltar for tax purposes.

Q. How does a company register with the Income Tax Office?

A.You will need to file a Company Registration Form (CT3) and enclose additional documentation as specified in this form.

Company Registration - Form CT3 Supplementary Sheets - Form CT3A

Q. When does a company have to submit a Tax Return?

A. A company should submit a Complete Tax Return within nine months after the end of their financial period.

Tax Return - Form CT1

Q. What is a Complete Tax Return?

A. This is made up of the following documents:

1. A completed and signed CT1 form
2. Company accounts
3. Auditor's or Independent Accountant's Report
4. Tax computations
5. PAYE reconciliation (this would apply if company is not co-terminus with June)

Tax Return - Form CT1

Q. What happens if a company misses a filing date?

A. If a complete Tax Return is not submitted nine months after the end of the financial period, penalties will be imposed. Please refer to table below.

 You should note that legal action may be initiated at any point after initial default.

Q. Do company accounts have to be audited?

A. The minimum accounts filing requirements depend on two factors:  The type of registration under the Companies Act 2014; and whether the company has assessable income in Gibraltar in excess of £1.25m for up to periods ending 30^th June 2022.  The minimum accounts filing requirements are set out in the table below: 

The threshold of assessable income in Gibraltar was increased from £1.25m to £1.50m for accounting periods ending on or after 1^st July 2022.

 Q. What are 'Payments on Account' and when should these be paid?

A. These are advance payments of your company's tax liability, based on previous liabilities in accordance with the Payments on Account table in Schedule 10 of the Income Tax Act 2010.  They are payable in two equal instalments by no later than the 28^th February and 30^th September of every calendar year.

 Q. I have made both Payments on Account, do I need to make any further payment?

A.  On submission of your complete Tax Return, you will be liable for an additional tax payment if your profits exceed the sum of the two Payments on Account paid for the same period. This additional liability will be payable not later than nine months after the company's accounting period end.

 Q. What if I do not pay the full amount due?

If payments are not received on time, surcharges will be imposed. Please refer to table below.

 You should note that legal action may be initiated at any point after initial default.

Q. Can my Payments on Account be reduced if my company's current corporate tax liability is expected to be less than last year's?

A. If you are reasonably confident that your tax liability this year is going to be less than that of the previous year because your company has been less profitable this year, you are able to claim to reduce your Payments on Account.You must complete and submit a CT4 Application Form before the payment is due. Please note that surcharges will be incurred if, after having submitted such a claim, your accounts reflect that your actual tax liability exceeds the sum of the payments on account already made.

Claim to Reduce Payments on Account - Form CT4

Q. I have paid the Payments on Account due but have still received a tax assessment resulting in a  further liability - why is this?

A. This would normally be due to the company's tax computation having been adjusted by the Tax Office. A copy of the amended tax computation will have been sent to your accountant.

Q. My company has ceased to trade - what are my obligations?

A. The company should confirm its ceased trading date to the Income Tax Office in writing and continue filing complete returns up to the date it goes into liquidation or is struck off by Companies House. The company should also ensure that any outstanding liabilities with the Income Tax Office are paid.

For any enquiries please contact us on Tel 200 74889 or email us at 

corporate.enquiries@gibraltar.gov.gi