(From 1 500 EUR)
(From 1 500 EUR)
The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateAccounting requirements in Malta are analogous to British requirements. Accounts must be made in accordance with the EU Single Accounting Directive and in accordance with the Companies Act 1995. This Directive was incorporated into Maltese legislation by introduction of the General Accounting Principles for Small and Medium-Sized Entities (GAPSME). However, directors of small and medium-sized entities can still apply the International Financial Reporting Standards (IFRS) adopted by the EU.
Annual accounts must give clear representation of the company’s assets, liabilities, financial position, profits and losses. They must include a balance sheet, profit and loss statement and notes to accounts.
According to the Companies Act Cap. 386, every company incorporated in Malta must keep accounting records that must include information:
Accounting records must be stored in the company’s registered office or another place determined by resolution of the company’s directors within 10 years. If accounting records are kept outside Malta, they must be sent to Malta for storage and to enable preparation of financial statements. Documents on the company’s activity must be available for officers’ inspection at any time and must show information on the company’s transactions.
Besides annual accounts, all companies incorporated in Malta must prepare financial statements and file them with the Registrar.
A business entity can be incorporated in Malta as:
If any document included in annual accounts is in a language other than Maltese or English, the company must enclose a certified translation.
A company must present its annual accounts in the same currency as its authorized capital. If a company’s annual accounts are in a currency other than euro, the company’s balance sheet shall contain the exchange rate between the used currency and euro on the reporting date at the average rate of the Central Bank of Malta on that date.
Small companies have the right to file condensed balance sheets and condensed profit and loss statements.
Companies must appoint independent auditors to work from each annual general meeting to the next one. Auditors must report to shareholders on each set of financial statements presented at an annual general meeting of the company. The Companies Act also requires an auditor’s report to be made in accordance with the International Standards on Auditing.
According to the law, companies in Malta must annually get their financial statements audited. However, private companies that on the reporting date do not exceed two of the following three criteria are exempt from the obligation to prepare audited accounts and can prepare condensed versions of a balance sheet, profit and loss statement and notes to accounts:
In the case of non-fulfilment of the obligation to file an annual return and present financial statements (or presentation of financial statements in an improper form) to the Business Registry, officers shall be held liable and imposed with a fine of 2 329,37 EUR and a penalty of 46,59 EUR for each day of delay.
In the case of non-fulfilment of the obligation to file a tax return, a fine of 50 to 1 500 EUR shall be imposed on the company depending on the duration of delay.
A company that has subsidiaries must file consolidated financial statements for the group of companies. There are exceptions for small groups and intermediary parent companies; such companies are not required to file accounts
1) if they meet the criteria:
2) if the parent company is a subsidiary of another parent company of a member state of the European Union and is part of a bigger group of companies for which consolidated financial statements have already been prepared.
Yes, audit is mandatory in Malta for certain types of companies. The Companies Act of Malta requires all limited liability companies, public companies, and certain other types of entities to have their financial statements audited annually by a certified auditor. However, small companies that meet certain criteria may be exempt from the audit requirement.
Yes, Malta provides audit exemptions for small and micro‑entities that meet specified criteria. Under the Companies Act, a company may be exempt from audit if it does not exceed two of the following three thresholds: total assets €46,600; annual turnover €93,000; average number of employees during the financial year — 2.
Companies that meet these criteria may submit abridged financial statements and are exempt from the statutory audit. However, the exemption may not apply if the company is part of a group or carries on certain regulated activities, such as banking or insurance.
Malta applies International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles for Small and Medium‑sized Entities (GAPSME); small and medium‑sized enterprises may choose between these frameworks according to their needs.
The accountancy profession in Malta is regulated by the Accountancy Board, established in 1979 under the Accountancy Profession Act (Cap. 281).
The Board is responsible for issuing licences to accountants and auditors, registering accounting and audit firms and maintaining the relevant registers, and providing guidance and advice to the Minister of Finance.
It also participates in developing the Code of Ethics for accountants and auditors, sets requirements for continuing professional development (CPD), and conducts disciplinary proceedings against members of the profession.