There is now a requirement for all companies registered with Companies House in Gibraltar to submit a tax return, whereas previously only those companies with income assessable under the Income Tax Act 2010 had been required to submit a return.
In recently published guidance, the Income Tax Office (ITO) has stated that this change will apply to accounting periods ending on or after 1 January 2016. This is a change from the initial guidance on the changes resulting from the Income Tax (Amendment) Act 2015.
The guidance published by the ITO requires varying levels of supporting documentation to accompany tax returns, and this will broadly depend on whether a company is in receipt of assessable income and its size.
If a company is in receipt of assessable income, audited accounts are to be submitted with the tax return where the company has assessable income of £1.25m or more for a 12 month period. Where a company has assessable income of less than £1.25m for a 12 month period, accounts accompanied by an independent accountant’s report are to be submitted with the tax return.
If a company is not in receipt of assessable income, or is dormant, and is considered a small company in accordance with the Companies Act 2014, then only a balance sheet needs to be submitted with the tax return. However, if it is a medium or large company under the Companies Act 2014, then audited accounts must be submitted with the tax return. In order to assist with the transitional arrangements, no late filing penalty in respect of these companies will be levied until 1 January 2017.
Please note that these rules also apply to branches of companies registered with Companies House in Gibraltar.
If you require any assistance with meeting these filing obligations, please get in touch with us and we will be delighted to help.