What is the corporate tax rate in Gibraltar?
Short answer
The standard corporate tax rate in Gibraltar is 15%, charged on profits accrued in or derived from Gibraltar. Utility companies and companies abusing a dominant market position pay a higher rate of 20%.
Detailed answer
Gibraltar's standard corporate tax rate is 15%. It has applied since Monday 1 July 2024, when it rose from 12.5%. The rate had previously risen from 10% to 12.5% on Sunday 1 August 2021. Higher rate for some sectors A rate of 20% applies to utility companies, such as electricity, fuel and water providers, and to companies enjoying and abusing a dominant market position. Telecommunication companies pay 20% on their telecommunication services only, and their other taxable income is taxed at the standard rate. What income is taxed Companies are taxed on profits or gains that are accrued in or derived from Gibraltar, under section 11 and Schedule 1 of the Income Tax Act 2010. Where an accounting period straddles a change in rate, profits are apportioned day by day and each rate is applied to its share. Interest is generally not chargeable unless it comes from licensed money lending or deposit taking, or from loans by one company to another above £100,000. Registration and filing A company registered at Companies House Gibraltar is automatically registered for corporate tax. A complete return on Form CT1, with signed accounts and a tax computation where there is assessable income, is due within nine months after the end of the month in which the accounting period ends. Accounts must be audited where assessable income exceeds £1,750,000 for periods ending on or after Monday 1 July 2024; below that threshold, unaudited accounts need an independent accountant's report. Payments on account and penalties Companies that declare a taxable profit make payments on account of the next liability in two equal instalments, due by fixed dates in February and September. Any balance is payable with the return. Late returns attract penalties that depend on company size, and late payment attracts a 10% surcharge followed by a further 20% if the debt remains unpaid after 90 days.