FAQs
FAQs
The Audit Exemption Rules, 2025 (L.N. 139 of 2025) introduce new conditions under which certain companies in Malta are no longer required to obtain an annual statutory audit report. The rules apply to companies falling under the Companies Act and the Merchant Shipping Act.
The changes apply to:
- Private limited liability companies that meet the micro-entity thresholds under the Companies Act
- Shipping organisations registered under the Merchant Shipping Act that meet the criteria of Regulation 64 of the Shipping Organisations Regulations
To qualify for exemption or review, a company must not exceed two of the following:
- Turnover: ≤ €93,000
- Total assets: ≤ €46,600
- Average number of employees: ≤ 2
Companies meeting all three criteria are exempt from audit. Companies meeting two out of three are required to obtain a review engagement instead of a full audit.
To qualify for exemption from audit under the Merchant Shipping Act, the company must not exceed two of the following:
- Turnover: ≤ €12 million
- Total assets: ≤ €6 million
- Average number of employees: ≤ 50
Yes. All companies must still prepare and submit financial statements to the Malta Business Registry in accordance with GAPSME or IFRS, even if they are exempt from presenting an audit report.
Yes. All companies are still required to:
- Prepare annual tax computations
- Submit the company tax return to the Malta Tax and Customs Administration (MTCA)
A review engagement is a limited assurance service conducted under standards such as ISRE 2400, which provides a moderate level of assurance that no material misstatements have been identified. It is different from an audit conducted under International Standards on Auditing (ISAs), which are usually more applicable to larger entities.
Specific guidance is expected from the MTCA on how exemptions apply to group structures and fiscal units. Until then, companies are advised to consult with their professional advisors.
Yes. A company may choose to obtain a full statutory audit even if it qualifies for exemption. This may be beneficial for regulatory, financing, or internal governance reasons.
CLA Malta offers:
- Financial statement preparation in accordance with GAPSME/IFRS and tax computation for exempt companies.
- Review engagements as per the required international standard for qualifying entities.
- Full ISA audits where required.
- Assistance to shipping companies and their introducers with FS drafting and tax compliance.
- Contact Us Section at the end.