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Gibraltar

Non-resident company

A regular company, must be beneficially owned by non-residents, managed and controlled outside Gibraltar, must not hold bank accounts in Gibraltar, and must not derive income in Gibraltar or repatriate income to Gibraltar. On those conditions a non-resident company does not fall under Gibraltar taxation per se (is not subject to Gibraltar tax system as such).

Normally, a non-resident company is directly managed and controlled by the client himself, or by clients’ appointees outside Gibraltar. Place of management & control (hence, the notional place of taxation) would be considered to be outside Gibraltar – usually, where the client actually operates.

Only limited administration services to non-resident company are available from Gibraltar. Usually this type of company is utilised by clients for purely international operations, where the formal location of management & control of the company is not a concern for their tax purposes.

Exempt company

Starts life as regular company, but on the basis of specific Exempt Application is allowed to pay a fixed fee in lieu of tax (usually GBP 225 p.a.). Hence, the company is formally taxresident in Gibraltar. An exempt company will also usually be managed and controlled by a Gibraltar based manager. Full scope of management services is available to such company – general management, processing of documents, invoicing, handling of correspondence and similar. This normally enables the company to prove that its place of management & control for tax purposes is actually in Gibraltar. A tax-exemption certificate is issued by the Gibraltar government for a period of 25 years.

Usually exempt companies are utilised by clients who need to be able to prove to third parties that the particular Gibraltar company is indeed tax-resident in Gibraltar. Properly configured and managed, a Gibraltar tax-exempt company would be able to position itself as properly resident and controlled in Gibraltar. This would serve three purposes:

  • to project a logical image of a real, proper, “live” corporation;
  • to avoid any doubt as to the possible income tax liability of the company elsewhere;
  • to conceal any unnecessary visibility of the actual owner of the company.

It is a more appropriate structure for serious tax-planning applications. It is also more expensive, but remains competitive with similar structures elsewhere.

Conversions

A non-resident company can be converted into an exempt company at any later date (by filing the exemption application). An exempt company can be converted into a non-resident company, if it ceases to pay the annual tax and at the same time remains to comply with the requirements for being considered non-resident (as described above.)

Apply for Gibraltar Non-resident Company
Apply for Gibraltar Tax Exempt Company
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