A company with tax exempt status in Gibraltar is exempt from the following:
- Corporate taxation on profits.
- Withholding taxes on interest, fees and other payments to non resident directors or to other persons, and dividends paid to its shareholders.
- Estate duty on the value of shares on the death of a shareholder.
- Stamp duty on the transfer of shares.
There is provision in law to ensure the identity of the beneficial owner remains secret and confidential.
MANAGEMENT AND CONTROL
- An exempt company can be resident, managed and controlled in or from Gibraltar without affecting its tax exempt status. There are no restrictions as to the nationality or residence of its directors.
USES OF AN EXEMPT COMPANY
The low administration and set up costs of the exempt company make it an ideal vehicle for:
- Holding a portfolio of financial investments.
- Holding of alternative investments.
- Owning property.
- Owning a yacht or vehicle.
- A sales agency company, of particular benefit where trade is being carried on between two high tax jurisdictions.
- An international trading company.
For a company to obtain and retain its tax exempt status it must fulfil the following conditions :
- It must at all times have a paid up share capital of £100 or the foreign equivalent thereof.
- No Gibraltarian or Gibraltar resident may have a beneficial interest in the shares of the company.
- The company may not, without the prior consent of the Gibraltar Financial & Development Secretary, trade or carry on business in Gibraltar with Gibraltarians or residents of Gibraltar. It may however trade with other exempt or qualifying companies or non resident persons.
- The register of members must be kept in Gibraltar.
- No shares are issued or transferred without the approval of the Financial and Development Secretary.
FIXED ANNUAL TAX
The fixed annual tax payable is :
- £225 if the company is ordinarily resident.
- £200 if the company is not ordinarily resident.
- £300 in the case of a registered branch of an overseas company.