Book-Keeping & Accountancy Services
Accurate book-keeping and management reporting will ensure that a business complies with all Maltese statutory requirements. This will ensure that the Maltese company is always maintained in good standing and that penalties for late filing of documents are avoided for the company’s officers.
All companies incorporated in Malta, are required by the Maltese Companies Act, 1995 to maintain accurate and up to date books of accounts, which should reflect the true and correct position of the companies’ affairs, its financial performance and cash flows. These accounts should give sufficient and reliable clarification of their activities. The accounts should be carried out at least on an annual basis, with the first set of accounts covering not less than 6 months and not more than 18 months from the incorporation date of the company.
The records of accounts are usually kept at the registered office of the company or any other office as decided by the directors of the company. If the accounting records are kept outside of Malta then financial statements and returns must be maintained at the Malta company office, since these might be required to be inspected by the respective authorities; including the Maltese VAT Department or the Maltese tax department.
Timely Financial & Management Reporting
Management reports are crucial for making business choices and for assisting the accounts users to make informed decisions. CSB Group provides detailed management reports for businesses in order to assist them in their decision-making. Management accounts can be prepared on an annual, bi-annual, quarterly, monthly basis; basically they can be prepared for any time period required by the client, according to his/her exigencies.
We also assist our clients you in the completion and submission of all forms that a Malta-registered company is required to submit, such as
- Questionnaires from statistical authorities (known as an NSO questionnaire)
- Annual returns
- VAT Returns, if company is registered for VAT purposes in Malta
- Audited financial statements
- Tax Returns
Annual Returns for Companies Registered in Malta
Every company registered in Malta must prepare an annual return in the prescribed format to be made up, upon each anniversary of the companies’ registration/incorporation. The return must be filed with the Registrar of Companies within 42 days from the company’s anniversary date. If the annual return is filed later, penalties at €25 plus €0.50c per day will apply.
Once a company commences its economic activities, it needs to become VAT Registered with the VAT Department within 30 days from commencement of economic activities. Failing to become so registered will entail penalties.
A company that is registered under Article 10 of the VAT Act (VAT Registration applicable for trading companies), needs to file its VAT Returns on a quarterly basis. Penalties of €20 per month will apply for late filing of the Vat Returns. If there is any VAT to be paid, then interest calculated at 0.54% per month of the VAT amount will also apply.
A company that is registered under Article 12 of the VAT ACT (VAT Registration usually applicable for gaming companies and other companies providing Exempt without Credit Services) needs to submit notices/declarations whenever it receives any services from EU/outside EU or makes intra-community acquisitions of goods on which it must pay VAT in Malta. Moreover, on an annual basis, it also needs to submit an annual declaration of these services/intra-community acquisitions to the VAT Department.
We’ve been using CSB services for four years and they have been a great asset to our business. We’ve been very impressed with their friendliness and responsiveness and with the staff constantly producing quality work in every aspect of their business – from book keeping to tax preparation. We’re glad to have CSB as part of our team.
Audited Financial Statements
For each accounting period, the every company director shall prepare for each accounting period individual accounts comprising the balance sheet as at the last day of the accounting period to which they refer, the profit and loss account for that period, the notes to the accounts and any other financial statements which may be required. This is done by generally-accepted accounting principles and practice. These financial statements need to be compliant with International Financial Reporting Standards (IFRSs) as adopted by the EU. Companies that do not exceed certain thresholds can also have their financial statements prepared in accordance with General Accounting Principles for Small Entities (GAPSE). The audit of these financial statements is to be carried out by a qualified person holding the relevant warrant issued by the Maltese Accountancy Board and needs to be performed in accordance with International Auditing Standards.
These financial statements must be approved within 10 months from the accounting year end and must be filed with the Registrar of Companies within 10 months plus 42 days from the accounting year end. If the company has more than 90% of its interests outside Malta, it can file a Form U with the Registrar of Companies so that an extension of 18 months from the accounting year end is granted. However, given that the tax return must be filed within the later of 9 months and 31 March of the following year, the audit might still be required to be finalised beforehand (irrespective of the extension granted by the Form U). If these deadlines are not adhered to, penalties of €25 plus €0.50c per day will apply accordingly.
Tax Returns for Malta Registered Companies
Every company incorporated in Malta is also required to prepare and file an Income Tax Return with the International Tax Unit (ITU) / Inland Revenue Department (IRD).
Companies which have a January-to-June accounting year-end are required to file their tax return by the 31st of March of the following year. Companies that have an accounting year-end other than a January- to-June year end must file their income tax returns within 9 months after their accounting reference date.
Late Filing of Tax Returns
In the case of late filing of tax returns, penalties will be incurred as follows. Such penalties will vary and will be dependent on the number of months elapsed.
|No. of Months Elapsed||Additional Tax|
|Within 6 months||€ 50.00|
|Later than 6 but within 12 months||€ 200.00|
|Later than 12 but within 18 months||€ 400.00|
|Later than 18 but within 24 months||€ 600.00|
|Later than 24 but within 36 months||€ 800.00|
|Later than 36 but within 48 months||€ 1,000.00|
|Later than 48 but within 60 months||€ 1,200.00|
|Later than 60 months||€ 1,500.00|
Our highly qualified and experienced accounting team provides a comprehensive and professional bookkeeping and accounting service. Contact us today on +356 2557 2557 or via email at [email protected] to find out how we can help you handle all your business accounting in a timely manner.