Company audit in Gibraltar, financial statements, accounting, consulting in Gibraltar

For example, a company will be classified as medium-sized if it exceeds 2 of 3 parameters in the table in line 2 in the current and previous period. Later on the company will cease to be classified as medium-sized only after it does not exceed the said limits in two straight years.

The principle of classification of a group of companies is analogous to that described in the example for a separate company above.

Small and medium-sized groups are exempt from preparation and filing of consolidated accounts with the Registrar, except for when the group contains listed companies, a bank or an insurance company. In the case of a medium-sized group, exemption from consolidation must be confirmed in an auditor’s opinion.

The deadline for filing accounts with the Registrar is 12 months after the reporting date for all companies and 10 months after the reporting date for public companies. A public company, no matter its size, files the same set of financial statements as a large company.

The currency of accounts to be filed with the Registrar can be: GBP, GIP, USD, EUR, JPY or CHF. If the currency of accounts differs from the currency in which the share capital is issued, the company must disclose in the notes the currency of the share capital and the rate of conversion into the currency of accounts.

All companies incorporated in Gibraltar or (other) companies that have income taxable in the territory of Gibraltar must prepare and file tax accounts with state authorities (HM Government of Gibraltar). Even if a company has no taxable income, it must file a zero tax return.

Since 1 January 2011, companies shall fill out and file a tax return according to form CT1 along with an additional set of documents, including:

• financial statements;
• tax calculation if there is taxable income;
• collation of form P8, for employers, if financial year does not end on 30 June.

Requirements regarding the set of financial statements accompanying a tax return are described in the tax return, see the table below. The requirements are minimal, i.e. the company, if it wishes, can provide more detailed information.

Tax accounts must be filed and tax must be paid in Gibraltar within 9 months after the end of the financial year.

The following penalties are imposed for late filing of tax accounts:

• 50 GBP – initial late filing penalty;
• additional 300 GBP – for a delay of more than 3 months;
• additional 500 GBP – for a delay of more than 6 months;

For example, the company’s financial year ended on 31 December 2021:

• 50 GBP penalty is imposed on 1 October 2022 (total: 50 GBP);
• 300 GBP penalty is imposed on 1 January 2023 (total: 350 GBP);
• 500 GBP penalty is imposed on 1 April 2023 (total: 850 GBP).

The following penalties are imposed for late payment of tax:

• 10% of the unpaid tax – initial penalty;
• 20% of the outstanding tax and penalty – for a delay of more than 90 days.

For example, the financial year ended on 31 December 2021, and the tax is 1 000 GBP:

• 100 GBP (1 000*10%) penalty is imposed on 1 October 2022 (total: 100 GBP);
• 220 GBP ((1 000+100)*20%) penalty is imposed on 31 December 2022 (total: 320 GBP).

Penalties and expenses when filing accounts with the Registrar (Gibraltar Companies House):

• 25 GBP fee is changed when filing accounts;
• in the case of failure to file within 12 months, the first penalty of 100 GBP is imposed;
• in the case of another 12-month delay, an additional 50 GBP is charged.

It means that in total 175 GBP of penalties and filing fees can be charged.