Current (August, 2002) Proposals in Gibraltar legislation
A current (and promising to pass) proposal in Gibraltar seeks to effectively eliminate the distinction between "exempt" and "nonresident" companies by leveling the income tax for all Gibraltar corporations (to 0%.) Currently, all companies are formed identically under the 1931 Companies Ordinance (effectively UK 1929 Companies Act). Once formed, their tax treatment depends on (a) their use - resident or non resident and (b) whether or not one of the existing "tax concessions" has been applied for.
The tax Ordinance basically says that where an individual or company does not have income arising in Gibraltar it shall not be liable to Gibraltar taxation. The new proposals seem to reinforce this position - if a company has no physical presence it won't have to pay the new "employee" or "office space" tax and therefore will only pay (as now) the company registration fee which is increasing from 31 to 300 pounds. The exempt company is essentially being eliminated.
In summary, exempt companies have been replaced by standard companies but at the same time Government of Gibraltar has (a) put non resident companies into the same "bracket" in terms of government fees and (b) the demands of the EU (level taxation) have been met.
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