Malta Introduces New Audit Exemption Framework under Legal Notice 139 of 2025
- Matthew Aquilina Colombo
- Jul 21
- 2 min read
With effect for accounting periods starting on or after 1 January 2024 (and, for existing companies, 1 January 2025), Malta’s Legal Notice 139 of 2025 lightens audit obligations across the board. Here’s a streamlined overview:
1. Start‑up Relief
Two‑Year Audit Waiver
Newly registered companies whose individual shareholders hold at least an MQF Level 3 qualification—and whose turnover stays below €80,000 per year—can skip the statutory audit for their first two accounting periods.
Enhanced Tax Deduction
If they choose to carry out an audit instead, these start‑ups may claim 120 % of the audit cost (capped at €700) as a tax deduction for each of those two years.
2. SME & Group Exemptions
Review Reports vs. Full Audit
From 1 January 2025, companies meeting any two of the three “small company” tests under Article 185(2) of the Companies Act (balance‑sheet total, turnover, headcount) can supply a streamlined review report rather than a full audit.
Complete Audit Exemption
Firms satisfying all three size thresholds enjoy a full audit exemption.
Parent‑Subsidiary Relief
A parent company preparing consolidated accounts can apply the same relief if its group qualifies as “small” under Article 185(5).
3. Shipping Sector
Entities registered under the Merchant Shipping Act that already benefit from shipping‑specific audit waivers automatically meet Income Tax audit requirements—both standalone and as part of a qualifying group.
Key Dates & Notes
2024: Start‑up measures kick in for periods commencing 1 January 2024.
2025: SME and shipping provisions apply to periods from 1 January 2025.
Qualification Checks: Any change in shareholding or size metrics may revoke the relief immediately.
By tailoring relief for new ventures, SMEs and maritime operators, Legal Notice 139 promotes agility and eases compliance costs—freeing up resources for growth. For personalised advice, please consult with our Audit Team.
Get in Touch:
Anastasia Debono
adebono@quazar.mt / +356 2388 4600
