Gibraltar Limited Liability Company

[Lolita123]

Hello,

I have recently opened a limited liability company in Gibraltar and have a few questions I don't really find answers to.
I am not employed in the company and otherwise live and work in EU country.

1. Are there any regulations on what I can count as a company expense and spend the money on? (flight ticket, phone, computer, food etc?)
2. Can the company buy gold for example. If yes, do I just buy it and that's it or does it bring any additional accounting/audit consequences?
3. What's actually the easiest way to take the money out of the company without counting it as an income in your own country?
4. Besides giving the tax report once per year, do I need to submit invoices to somebody? Or does it not really matter how you spend company money?
5. In my country you can pay for certain expenses with your own card and then every now and then refund these expenses to your own card from the company account. Can I do that in Gibraltar? Do these invoices for example need to be written on my ltd or doesn't metter?
(in my country we have very strict regulations on that, however when working abroad I have always experienced very relaxed regulations on that).

If anyone could help I would really appreciate it.
If there are any recommendations on reading materials for these topics I would appreciate that as well

Thanks

 

[Sols]

1. Are there any regulations on what I can count as a company expense and spend the money on? (flight ticket, phone, computer, food etc?)

Yes, there are regulations. Generally speaking, it has to be for the purpose of the company and doing business. So you can't buy yourself a nice watch and call it a company expense. But if you buy a computer for work purposes, it probably qualifies as company expense.

If you pay for it yourself (with your own money), you have to claim it from the company. If you pay for it with the company's money, make sure you save the receipts and invoices so your accountant can record the transaction correctly.

2. Can the company buy gold for example. If yes, do I just buy it and that's it or does it bring any additional accounting/audit consequences?

I don't see any reason why it couldn't, as long as it's not meant as an investment product for other people's behalf.

3. What's actually the easiest way to take the money out of the company without counting it as an income in your own country?

Move to a tax haven. Otherwise, you have no legal options.

4. Besides giving the tax report once per year, do I need to submit invoices to somebody? Or does it not really matter how you spend company money?

You have to file annual report in Gibraltar. And you have to file a tax return in your country of residence, because your Gibraltar company is probably tax resident there.

5. In my country you can pay for certain expenses with your own card and then every now and then refund these expenses to your own card from the company account. Can I do that in Gibraltar? Do these invoices for example need to be written on my ltd or doesn't metter?
(in my country we have very strict regulations on that, however when working abroad I have always experienced very relaxed regulations on that).

These are questions the company that helped you form the Gibraltar company should be able to answer, assuming that they are also doing the accounting for your company.

If anyone could help I would really appreciate it.
If there are any recommendations on reading materials for these topics I would appreciate that as well

No offense, but these are very basic questions that indicate a profound misunderstanding of how tax laws work nowadays. Your Gibraltar company is not a legal vehicle for saving on tax. You can't just form a foreign company and suddenly not have to pay local tax. Those days are gone.

Before you start committing tax fraud, speak with a local tax adviser/lawyer to help make sure your company is compliant with your local law. The company might have to register for tax locally.

 

[Lolita123]

Thanks a lot for ally our answers.
I am currently in the process of changing the agent that helped opening the company as they stopped responding to all the emails and just dissapeared. As i have no experience in this and only well opened the company I don't have the proper knowledge and need to make sure I don't commit any tax frauds as you mentioned!

 

[fshore]

5. Yes you can mark purchases as paid from directors loan account, and you can reimburse yourself when company funds are available. You need the invoices off course, the transfer from the company to yourself is just a bank / accounting transfer.