Every company that is registered in Gibraltar, or has assessable income in Gibraltar, is required to make a return of its income under Section 29 of the Gibraltar Income Tax Act 2010. Tax returns must be submitted even if there is no tax liability in respect of the period. Any company that fails to comply with its statutory obligations will be liable to penalties.
Annual accounts must be drawn up either in accordance with the international accounting standards (IAS) or in accordance with section 243 of the Gibraltar Companies Act 2014. They must give a true and fair view of the company’s assets, liabilities, financial position and profit or loss. Accounts must be filed on an annual basis. If the filing requirements are not complied with before the end of the relevant period, the company and every officer of the company commits an offence and is liable to pay a fixed penalty.
Sovereign Trust (Gibraltar) will provide comprehensive accountancy services to businesses that will be tailored to their requirements at a very competitive rate. The services we typically provide include:
- Bookkeeping Services: Sovereign Trust (Gibraltar) is currently managing bookkeeping services for a variety of clients ranging from small and medium-sized enterprises (SMEs) to large businesses and complex international group structures. Our services and fees will be based on a client’s current activity and requirements. As a business develops, we will continue to increase our support to match. Our bookkeeping services include the following:
- Recording of all business transactions in accordance with International Financial Reporting Standards (IFRS)
- All business transactions will include all income and expenses, receipts and payments, and any other adjustments
- Posting of general ledger and other ledgers as necessary
- Reconciliation of bank statements and passing any necessary adjustments.
- Accounting reconciliations
- Preparing and generating sales invoices
- Financial Reporting: a financial statement is a formal record of the financial activities of a business. It shows the financial position (assets, liabilities and shareholders’ equity) and financial performance (profit and loss) of a company. A financial statement assists management to make decisions in respect of forward planning and also assists external partners, such as banks or vendors, in making decisions about the company’s borrowing capacity. We will provide clients with a complete set of financial statements that includes the following:
- Statement of Financial Position (Balance Sheet)
- Income statement (Profit and Loss account)
- Statement of cash flows
- Audit Assistance: an audit of financial statements is the objective independent verification of the financial statements. This increases the value and credibility of the financial statements produced by the management. Sovereign Trust (Gibraltar) works with various local and international audit firms and will assist in matching a client to an auditor, based on the requirement and budget. We also provide full support during audit by liaising with the auditors, preparing the schedules and confirmation letters for auditors and attending to auditor questions.
- Management Accounting: management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.
- Maintaining Cash Books: a cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.
- Tax Returns: a tax return is the form used to report income and file tax returns with the local tax authorities. Our services include preparation and filing of tax returns and dealing with any enquiries from the local tax authorities that may arise.
- VAT Returns for UK companies: a VAT return is filed with HM Revenue & Customs (HMRC) in the UK, usually four times a year, to show how much VAT you are due to pay. Sovereign Trust (Gibraltar) can arrange VAT registration with HMRC and file VAT returns on a quarterly basis.
Hiring a dedicated in-house accountant in Gibraltar involves significant obligations and costs related to monthly salary, labour contract fees, annual leave, training costs and overtime costs. Our fixed monthly fees tailored to a client’s specific requirements will be far more cost effective.
Sovereign’s Gibraltar team comprises professionally qualified accountants or trainee accountants with expert knowledge and experience across diverse sectors. We can either visit a client’s premises on a weekly or monthly basis to complete the books or clients can remit the supporting documentation to our office and we can provide accounting services remotely.