Changes in Gibraltar Offshore Legislation

Some changes were approved and accepted to the Gibraltar Laws of which information should be provided.

The 2005 year agreement between the Gibraltar Government and the European Union announced the end of the tax exempt regime on December 31, 2010. The story of this agreement has started in December 2004 when after long negotiations between Gibraltar, Great Britain and the European Commission, a respective decision was made concerning the tax-exempt status of 8,464 Gibraltar registered companies. The purpose of this agreement was to decide much uncertain questions in Gibraltar Financial Centre.

The official publication of the agreement had been delayed until February 2005, and no reasons for this have been publicly explained by the Commission. The formally announced agreement provides for any existing tax exempt companies to benefit from their status until December 31, 2007. The agreement allowed for some new business to participate in the regime. New applications for exempt status could be made until June 30, 2006, and they were approved only in the cases of real economic benefit to Gibraltar. In practice, that meant that the majority of applications was declined.

The following legislative points should be noted with regard to the filing of accounts for the Gibraltar Companies:

Companies (Accounts) Ordinance 1999 - all limited companies except those which are non-profit making or licenced banks and insurance companies must file accounts;

Companies (Consolidated Accounts) Ordinance 1999 - limited companies with subsidiary companies must prepare consolidated accounts;

Partnership and Unlimited Companies (Accounts) Regulations 1999 - partnership and unlimited companies must file accounts in accordance with the Companies (Accounts) Ordinance 1999 if all their members have limited liability.