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Corporate Accounting Requirements in Malta | Endevio

Written by Endevio | Aug 26, 2021 3:34:05 PM

The Companies Act requires every company to keep proper accounting records in the same currency of its share capital. Companies in Malta are required to file a copy of the annual accounts, generally accompanied by a copy of the auditors’ report thereon and the directors’ report. 

The annual accounts must be filed within 10 months from the end of the financial year, with a grace period of 42 days. 

Accounting requirements of a Maltese Company

Maintain an accurate and up-to-date book of accounts, which should reflect the proper and correct position of the company’s affairs, financial performance, and cash flows. 

Acquire the following services from our team: 

  • Book-keeping of all business transactions  
  • Monthly reconciliation of bank balances  
  • VAT return calculation, review, and submission  
  • Day-to-day correspondence and replies to any VAT or Income Tax related questions  
  • Finalisation of annual management accounts with review by senior accounts executive and head of accounts  
  • Processing of tax computation while maximising any tax savings or credits, including advice on the amount of dividends that can be distributed for potential tax refunds  
  • Dealing with auditors’ requests  

A company with subsidiaries must submit consolidated financial statements for the group of companies. Certain exemptions exist for financial holding companies, small groups, and intermediate parent companies. 

Auditing procedures for Maltese Company

Companies are required to appoint independent auditors to hold office from each annual general meeting to the next. They must report to the shareholders on every set of financial statements furnished at a company’s annual general meeting. As required by the Companies Act, the auditor’s report should be composed according to the International Standards on Auditing. 
 
Every company is required to file an annual income tax return. Companies with financial year ending on December 31st must file their return by the following September 30th. Other companies must file their tax return by the end of the ninth month after their accounting date or by the 31st of March of the calendar year following the accounting date, whichever is the later. The tax return due date for individuals and other taxpayers is June 30th. 

 Annual return filing with the Malta Business Registry

At least once every year, a company is required to file an annual return at the Malta Business Registry with the following information: 

  • Address of registered office
  • Summary of share capital and debentures
  • List of shareholders
  • Particulars of directors. 

The annual return must show the position as on each anniversary of the company’s registration and forwarded to the Registrar within 42 days from that date. 

It is the responsibility of the officers of every company that the annual return and accounts are filed on time. Depending on the authorized capital, a payment between €100 - €1,400 is to be submitted along with the return. The fees may be reduced in the event that the electronic format option is adopted. 

Other obligations 

The directors or the company secretary also have to inform the Registrar about specific changes and events during the company’s lifetime. This information is generally submitted on prescribed forms within 14 days from the matter, change, or event. The most common notifications concern the following: 

  • Changes among directors and company secretary (new appointments resignations, or removal) and in the legal representation of the company
  • Transfer and transmission of shares
  • Amendments to the memorandum or articles of association
  • Change in the registered office of the company
  • Issue and allotment of shares
  • Dissolution of the company.