Gibraltar: Domestic Corporate Taxation
Calculation of Taxable Base
For companies, corporation tax is normally assessed for income arising in the previous fiscal year.
Allowable expenditure needs to be incurred 'wholly and exclusively' for the business; however, mixed private/company expenses can often be apportioned.
The rules for depreciation of business assets are as follows:
- the first GIP30,000 for fixtures and fittings, plant and machinery acquired in the year of assessment; 15% on the reducing balance;
- the first GIP50,000 for qualifying IT expenditure; 15% on the reducing balance;
- industrial buildings: 4% of cost per annum;
- motor vehicles: 15% on the reducing balance;
- capital payments for leasehold premises: over the period of the lease, up to 12 years maximum.
There is a gaming tax set at 1% (3% in the 2005 budget) the cap on the gaming tax is GIP425,000 with the minimum payable being GIP85,000.