Accounting Services and Payroll

A Malta company is required to keep proper accounting records, in the same currency as that of its share capital. The Directors of a company are required to prepare a full set of financial Statements for each accounting period, that, in accordance with the Maltese Company’s Act, 1995 shall comprise of a Balance Sheet, a Profit and Loss Account, a Statement of Changes in Equity, a Cash Flow Statement and other explanatory notes.

The company must appoint auditors who shall present a report to the shareholders based on the financial statements of the company, providing their opinion on whether the accounts give a true and fair view of the company's financial position, performance and cash flows for the accounting period in accordance with International Financial Reporting Standards.

Companies falling within the definition of "small companies" may draw up an Abridged Balance Sheet and Profit and Loss Account and are required to file with the Registry of Companies only such abridged accounts. Furthermore, where a small company is also a “private exempt company”, it may deliver to the Registry of Companies only its Abridged Balance Sheet and Auditors' Report, but without the Profit and Loss Account and Directors' Report.

Consolidated Group Accounts are required in the case of a Group of Companies which would consist of a holding company with subsidiaries. However, there are also exemptions from this requirement in the case of small sized Groups of Companies and Financial Holding Companies.

The Audited Financial Statements including a Directors’ Report must be presented to the members of the Company at an Annual General Meeting to be convened every year, and by not later than 10 months from the company's financial year end.

Apart from the statutory annual financial statements, CSB Group also offers a range of services including book-keeping, periodic management accounts, yearly financial statements, and from feasibility reports up to budgetary control.

Companies which are engaged in employement activities in Malta, are required to keep full records for each employee, to include amounts paid as salaries, bonuses, allowances, any any other additions, together with any deductions required by law relating to Income Tax and Social Security Contributions from the date of engagement to the date of termination of employement.

Deductions relating to Income Tax are made from the Gross Salary on a monthly basis, using a system known as the Final Settlement System (FSS), whereby the portion of tax due on the income for that particular period is withheld by the employer from the employee's salary.

Deductions relating to Social Security Contributions (“SSC”) are made on a monthly basis. The amount of deduction would vary depending on the Category under which an employee is classified. The same amount of SSC paid by the employee needs to be paid by the employer.

On a montly basis the employer will need to submit to the Commissioner of Inland Revenue, a return summarising both the amount of Income Tax and SSC deducted from the employee’s salaries as well as the amount of SSC paid the employer. This will need to be accompanied by the relative payment for these deductions. Yearly reports reconciling all of these amounts also need to be submitted to the Commissioner of Inland Revenue.

The CSB Group offers payroll support services which cater for all the formalities outlined above.

For Corporate Services, including Company Incorporation, Back Office Management and Accounting & Payroll Services; kindly forward your query to corporate@csbgroup.com