Find Accountancy, Audit and Tax expertise in Malta
Accountancy and auditing services in Malta are provided by a mix of Maltese and multinational businesses. As well as the ‘Big Four’ accountancy firms, domestic companies such as EMD, Baker Tilly Sant and Fenlex provide support to many sectors such as online gaming and finance. Auditing of the sector is mandated by the Companies Act which requires every company to keep proper accounting records that explain its transactions and facilitate the preparation of financial statements. In 2009 an amendment of legislation required that all listed and non-listed companies adopt EU International Financial Reporting Standards (IFRS) for accounting, rather than the full IFRS that had previously been required. Further change occurred that year when an amendment allowed non-listed and non-institutional Maltese companies with assets below €17.5 million, revenue below €35 million, and fewer than 250 employees, to prepare their annual financial statements in accordance to General Accounting Principles for Smaller Entities (GAPSE) instead of IFRS. In the World Economic Forum’s Global Competitiveness Report (2012-13) Malta was placed 16th in the world for the strength of its auditing and reporting standards, with a value of 5.8 out of 7, above the world mean of 4.6.
The Malta Institute of Accountants (MIA) is the professional body for the sector, which provides professional guidance and continuing professional education, representing over 1,500 accountants. MIA runs a joint training and examination scheme with the Association of Certified Chartered Accountants (ACCA), which leads to both ACCA and MIA qualifications. Examinations take place twice a year and after qualification an individual can apply for membership with both ACCA and MIA. To pursue accountancy through the professional entry route a certain level of secondary education is required.
Personal income tax in Malta is progressive, rising to 35% for incomes over €19,501. The company tax rate is 35%, payable by all companies registered or resident in Malta with no threshold for reduced rates of taxation. The standard value added tax (VAT) rate is 18%. Malta has extensive double tax treaties with almost 60 countries, and is the only EU member with a full tax imputation system whereby shareholders are credited with taxes on corporate profit when dividend distributions are made and income taxes applied. As of 2011 Malta had adopted all EU tax directives, such as the parent-subsidiary directive. The government departments responsible for the administration of tax laws are: the Inland Revenue Department, the Value Added Tax Department, and the Customs Department.
|Accountancy, Audit and Tax organisations in Malta|
|Andrew Galea & Associates||
|CAC Corporate Corporate Services Ltd||
|Deloitte & Touche||
|EJZ Comprehensive Business Services Limited||
|UHY Business Advisory Services Limited||