Corporation Tax applies to companies either resident in, or with business activities in, the Falkland Islands (FI).
FI operates an automatic pay and file system for Corporation Tax.
The FI has two rates of Corporation Tax. Profits up to a threshold amount of £500,000 are liable to Corporation Tax at 21%, with profits over £500,000 being subject to a rate of 26%.
The threshold amount of £500,000 is apportioned by the number of worldwide associated companies.
Profits arising from activities in connection with oil exploration or exploitation (ring fence trade) are chargeable to Corporation Tax at the rate of 26%.
Readers familiar with the UK corporate tax system may notice some similarities in FI legislation. However there are major differences of substance and it is recommended not to rely on UK experience in any area without checking the relevant FI legislation.
For further details please see ‘CT Guide’.
For details on making payment: