New statutory provisions in Gibraltar revise the filing obligations of companies incorporated in Gibraltar that declare dividends.
For accounting periods ending on or after 1 January 2016, every company incorporated in Gibraltar (except those that are listed on a “recognised stock exchange”) that declares a dividend must file a return within nine months after the end of the accounting period in which the dividend was declared.
Additionally, companies declaring dividends in favour of shareholders who are ordinarily residents in Gibraltar or to another company incorporated in Gibraltar must provide these shareholders with information about the amount of tax credit and the “dividend entitlement divided” between that part paid out of profits chargeable to tax in Gibraltar and that part paid out of profits not chargeable to tax. This information also must be provided within nine months of the end of the accounting period in which the dividend was declared.
When companies were formerly deemed to have paid dividends from their taxable profits or reserves before other profits or reserves, dividends declared under the new rules will be deemed to have been distributed proportionally from profits chargeable to tax and profits not so chargeable to tax.
Read a January 2016 report [PDF 57 KB] prepared by the KPMG member firm in Gibraltar: Changes to the Gibraltar Income Tax Act 2010: Returns in respect of dividends
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