Gibraltar: Domestic Corporate Taxation

Scope of Corporation Tax

Since 2011, corporation (income) tax has been levied under the Income Tax Act 2010, which came into force on 1 January 2011. Ordinarily resident companies pay income tax on their worldwide income. As applied to a company, 'ordinarily resident' means:

• a company the management and control of whose business is exercised in Gibraltar; or
• a company which carries on business in Gibraltar and the management and control of which is exercised outside Gibraltar by persons ordinarily resident there within the meaning of the Act; or
• in the case of an investment company (ie whose income mainly arises other than from the gains or profits derived from any trade, business or employment), which is domiciled anywhere outside Gibraltar, where control of the company, through shares or voting powers, is exercised by persons ordinarily resident in Gibraltar.

A non-resident company is defined as one that is incorporated in Gibraltar and does not trade or earn income in Gibraltar. Such a company is not liable to corporation tax.

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