Analysis

Employer Tax

In Gibraltar, a company is required to register as an employer as well as register each of its employees with the Income Tax Office. Employees are required to obtain a Pay As You Earn ("PAYE") code from the Income Tax Office and provide this to the employer. Employers are required to deduct tax from employees under PAYE arrangements. These payments are submitted to the Income Tax Office by the 15th of the following month. The employer is also required to submit payroll forms such as the P8(summary of wages & PAYE and Social Insurance deduction of all employees for the tax year), P10(list of benefits in kind not included in payoff) and P12(Pension Contributions) forms for each tax year by the 31st July following the tax year end (tax years run from 1 July to 30 June). They are also required to make social security contributions themselves and deduct social insurance from employees’ wages at the following rates:    

Standard rate employee's contribution

10% of gross earnings subject to a maximum contribution of £1,308.32 p.a. for the year ending June 2014. Contributions are payable on a weekly basis subject to a minimum of £5 per week and a maximum of £25.16 per week. 

Standard rate employer's contribution

20% of gross earnings subject to a maximum contribution of £1,714.44 p.a. for the year ending June 2014. Contributions are payable on a weekly basis subject to a minimum of £15 per week and a maximum of £32.97 per week.

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