Use this skill with your AI agent
Paste this skill into your AI agent's context, or save the file to your project. Works with any AI agent that reads markdown.
malta-financial-statements.md242 lines8.9 KB
v10Malta
Not yet verified by an accountantContact accountant
| 1 | --- |
| 2 | name: malta-financial-statements |
| 3 | description: > |
| 4 | Use this skill when preparing, reviewing, or advising on annual financial statements for a Maltese company. Trigger on phrases like "annual accounts Malta", "financial statements Malta", "Companies Act filing", "MBR filing", "balance sheet format", "profit and loss format", "directors' report", "audit exemption Malta", "small company Malta", "abridged accounts", "year-end adjustments", or any question about preparing statutory accounts under the Malta Companies Act (Cap. 386). Covers reporting frameworks, size thresholds, required statements, P&L and balance sheet formats, notes disclosures, filing deadlines, and audit requirements. |
| 5 | version: 1.0 |
| 6 | jurisdiction: MT |
| 7 | category: financial-statements |
| 8 | depends_on: |
| 9 | - financial-statements-workflow-base |
| 10 | --- |
| 11 | |
| 12 | # Malta Financial Statements Skill v1.0 |
| 13 | |
| 14 | --- |
| 15 | |
| 16 | ## Section 1 -- Quick Reference |
| 17 | |
| 18 | | Field | Value | |
| 19 | |---|---| |
| 20 | | Country | Malta (Republic of Malta) | |
| 21 | | Currency | EUR | |
| 22 | | Filing authority | Malta Business Registry (MBR) | |
| 23 | | Primary legislation | Companies Act, Chapter 386 | |
| 24 | | Supporting legislation | Accountancy Profession Act (Cap. 281); Income Tax Management Act (Cap. 372) | |
| 25 | | Accounting standards | IFRS as adopted by the EU (default); GAPSME for qualifying entities | |
| 26 | | Financial year | Any 12-month period (calendar year common but not mandatory) | |
| 27 | | Filing deadline | 10 months from year-end for approval; 42 days after approval for filing | |
| 28 | | Late filing penalty | EUR 250 per year of delay (Registry surcharge) | |
| 29 | | Digital filing | Yes — MBR Online portal | |
| 30 | |
| 31 | --- |
| 32 | |
| 33 | ## Section 2 -- Reporting Framework |
| 34 | |
| 35 | | Entity type | Applicable standard | |
| 36 | |---|---| |
| 37 | | Public interest entities / listed companies | Full IFRS as adopted by the EU | |
| 38 | | Large private companies | Full IFRS as adopted by the EU | |
| 39 | | Small and medium private companies | GAPSME (General Accounting Principles for Smaller Entities) permitted as alternative to IFRS | |
| 40 | | Micro-entities (Art. 185(2) criteria met) | GAPSME with further simplifications | |
| 41 | |
| 42 | GAPSME is based on IFRS for SMEs with Malta-specific adaptations. Companies may always elect to use full IFRS even if eligible for GAPSME. |
| 43 | |
| 44 | --- |
| 45 | |
| 46 | ## Section 3 -- Size Thresholds |
| 47 | |
| 48 | ### Small Company (Article 185(2) Companies Act) |
| 49 | |
| 50 | A private company qualifies as small if it does not exceed at least two of the following three thresholds on its balance sheet date: |
| 51 | |
| 52 | | Criterion | Threshold | |
| 53 | |---|---| |
| 54 | | Balance sheet total | EUR 4,000,000 | |
| 55 | | Turnover | EUR 8,000,000 | |
| 56 | | Average employees | 50 | |
| 57 | |
| 58 | ### Audit Exemption Micro-Thresholds (Article 185(2) — 2025 rules) |
| 59 | |
| 60 | | Criterion | Threshold | |
| 61 | |---|---| |
| 62 | | Balance sheet total | EUR 46,600 | |
| 63 | | Turnover | EUR 93,000 | |
| 64 | | Average employees | 2 | |
| 65 | |
| 66 | Companies not exceeding 2 of 3 above: review report only. Companies not exceeding all 3: no audit or review required (effective for periods starting on/after 1 January 2025). |
| 67 | |
| 68 | ### Small Group (Article 185(5)) |
| 69 | |
| 70 | | Criterion | Threshold (net) | Threshold (gross) | |
| 71 | |---|---|---| |
| 72 | | Balance sheet total | EUR 4,000,000 | EUR 4,800,000 | |
| 73 | | Turnover | EUR 8,000,000 | EUR 9,600,000 | |
| 74 | | Average employees | 50 | 50 | |
| 75 | |
| 76 | --- |
| 77 | |
| 78 | ## Section 4 -- Required Financial Statements |
| 79 | |
| 80 | | Document | Large | Small | Micro | |
| 81 | |---|---|---|---| |
| 82 | | Statement of Financial Position (Balance Sheet) | Required | Required | Required | |
| 83 | | Statement of Comprehensive Income (P&L) | Required | Required (abridged permitted) | Required (abridged) | |
| 84 | | Statement of Changes in Equity | Required | Required | Not required | |
| 85 | | Statement of Cash Flows | Required | Not required | Not required | |
| 86 | | Notes to the Financial Statements | Required (full) | Required (reduced) | Minimal | |
| 87 | | Directors' Report | Required | Required | Required | |
| 88 | | Auditor's Report | Required | See audit exemption | See audit exemption | |
| 89 | |
| 90 | --- |
| 91 | |
| 92 | ## Section 5 -- Year-End Adjustments Checklist |
| 93 | |
| 94 | | # | Adjustment | Malta-specific notes | |
| 95 | |---|---|---| |
| 96 | | 1 | Depreciation | IAS 16 rates; no statutory rates prescribed (tax depreciation per 6th Schedule ITA is separate) | |
| 97 | | 2 | Accruals | Audit fees, bonuses, utilities, professional fees | |
| 98 | | 3 | Prepayments | Insurance, rent, licences spanning year-end | |
| 99 | | 4 | Provisions | Warranty, legal claims, restructuring (IAS 37 criteria) | |
| 100 | | 5 | Bad debt provision | Specific + expected credit loss model (IFRS 9) | |
| 101 | | 6 | Inventory valuation | Lower of cost and NRV; FIFO or weighted average | |
| 102 | | 7 | Deferred tax | Temporary differences at 35% corporate rate | |
| 103 | | 8 | Foreign exchange | Monetary items at closing rate; P&L differences | |
| 104 | | 9 | Lease accounting | IFRS 16 right-of-use assets (large companies) | |
| 105 | | 10 | Revenue cut-off | IFRS 15 performance obligations | |
| 106 | | 11 | Investment property | Fair value or cost model (IAS 40) | |
| 107 | | 12 | Employee benefits | Retirement benefits, accumulated leave | |
| 108 | |
| 109 | --- |
| 110 | |
| 111 | ## Section 6 -- Profit and Loss Format |
| 112 | |
| 113 | The Companies Act Fourth Schedule prescribes formats. Most Maltese companies use the "by nature" classification: |
| 114 | |
| 115 | ``` |
| 116 | Revenue |
| 117 | Cost of sales |
| 118 | ─── Gross profit ─── |
| 119 | Other operating income |
| 120 | Administrative expenses |
| 121 | Distribution costs |
| 122 | Other operating expenses |
| 123 | ─── Operating profit ─── |
| 124 | Finance income |
| 125 | Finance costs |
| 126 | ─── Profit before tax ─── |
| 127 | Income tax expense |
| 128 | ─── Profit for the year ─── |
| 129 | |
| 130 | Other comprehensive income: |
| 131 | Items that will not be reclassified to P&L |
| 132 | Items that may be reclassified to P&L |
| 133 | ─── Total comprehensive income ─── |
| 134 | ``` |
| 135 | |
| 136 | --- |
| 137 | |
| 138 | ## Section 7 -- Balance Sheet Format |
| 139 | |
| 140 | Companies Act Fourth Schedule format (vertical presentation): |
| 141 | |
| 142 | ``` |
| 143 | ASSETS |
| 144 | Non-current assets |
| 145 | Intangible assets |
| 146 | Property, plant and equipment |
| 147 | Investment property |
| 148 | Right-of-use assets |
| 149 | Investments in subsidiaries/associates |
| 150 | Deferred tax assets |
| 151 | |
| 152 | Current assets |
| 153 | Inventories |
| 154 | Trade and other receivables |
| 155 | Current tax assets |
| 156 | Cash and cash equivalents |
| 157 | |
| 158 | Total assets |
| 159 | |
| 160 | EQUITY AND LIABILITIES |
| 161 | Equity |
| 162 | Share capital |
| 163 | Share premium |
| 164 | Retained earnings |
| 165 | Other reserves |
| 166 | |
| 167 | Non-current liabilities |
| 168 | Borrowings |
| 169 | Lease liabilities |
| 170 | Deferred tax liabilities |
| 171 | Provisions |
| 172 | |
| 173 | Current liabilities |
| 174 | Trade and other payables |
| 175 | Current tax liabilities |
| 176 | Current portion of borrowings |
| 177 | Bank overdrafts |
| 178 | |
| 179 | Total equity and liabilities |
| 180 | ``` |
| 181 | |
| 182 | --- |
| 183 | |
| 184 | ## Section 8 -- Notes to Accounts |
| 185 | |
| 186 | ### Minimum required disclosures |
| 187 | |
| 188 | | # | Disclosure | Large | Small | Micro | |
| 189 | |---|---|---|---|---| |
| 190 | | 1 | Accounting policies | Full | Full | Summary | |
| 191 | | 2 | Property, plant and equipment movements | Full | Abbreviated | Not required | |
| 192 | | 3 | Related party transactions | Full (IAS 24) | Key management only | Not required | |
| 193 | | 4 | Financial instruments | Full (IFRS 7) | Simplified | Not required | |
| 194 | | 5 | Revenue disaggregation | By category/geography | Summary | Not required | |
| 195 | | 6 | Employee information | Average numbers + costs | Average numbers | Average numbers | |
| 196 | | 7 | Directors' emoluments | Required | Required | Not required | |
| 197 | | 8 | Contingent liabilities | Required | Required | Not required | |
| 198 | | 9 | Commitments | Required | Summary | Not required | |
| 199 | | 10 | Events after reporting period | Required | Required | Required | |
| 200 | | 11 | Share capital details | Required | Required | Required | |
| 201 | | 12 | Tax reconciliation | Required | Not required | Not required | |
| 202 | |
| 203 | --- |
| 204 | |
| 205 | ## Section 9 -- Filing Requirements |
| 206 | |
| 207 | | Item | Detail | |
| 208 | |---|---| |
| 209 | | Filing authority | Malta Business Registry (MBR) | |
| 210 | | Filing method | Online via MBR e-services portal | |
| 211 | | Approval deadline | Within 10 months from accounting year-end (private company) | |
| 212 | | Filing deadline | Within 42 days from date of approval by shareholders | |
| 213 | | Documents to file | Annual return + financial statements + directors' report + auditor's report (if applicable) | |
| 214 | | Filing fee | EUR 100 (standard); EUR 20 (micro) | |
| 215 | | Late filing penalty | EUR 250 annual surcharge | |
| 216 | | Language | English or Maltese | |
| 217 | | Format | PDF upload via MBR portal | |
| 218 | | XBRL requirement | Not currently required | |
| 219 | |
| 220 | --- |
| 221 | |
| 222 | ## Section 10 -- Audit Requirements |
| 223 | |
| 224 | | Category | Requirement | |
| 225 | |---|---| |
| 226 | | All 3 micro-thresholds met (Art. 185(2)) | No audit or review required (from FY starting 1 Jan 2025) | |
| 227 | | 2 of 3 micro-thresholds met | Review engagement required (ISRE 2400) | |
| 228 | | 1 or 0 micro-thresholds met | Full statutory audit required | |
| 229 | | Public interest entities | Always full audit | |
| 230 | | Groups preparing consolidated accounts | Audit required unless small group | |
| 231 | | Auditor qualification | Warranted accountant holding practising certificate (MIA registered) | |
| 232 | |
| 233 | ### Income Tax Override (Cap. 372) |
| 234 | |
| 235 | Article 19(4)(a) of the Income Tax Management Act historically required audited accounts for income tax purposes regardless of Companies Act exemptions. The 2025 Audit Exemption Rules (L.N. 139 of 2025) have aligned income tax requirements with Companies Act exemptions for qualifying companies. |
| 236 | |
| 237 | --- |
| 238 | |
| 239 | ## Disclaimer |
| 240 | |
| 241 | This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon. |
| 242 |
Run this skill, then get an accountant to check it
After running the full skill pack in your AI agent, sign up and upload your worksheet. We'll connect you with a trusted accountant in our network who can review your numbers before you file.
Verification status
Research-verified
Drafted from authoritative sources (tax authority sites, Big-4 summaries). Awaiting credentialed sign-off.
Needs section-by-section practitioner review to reach accountant-verified.
Section review progress
0/16
About
Use this skill when preparing, reviewing, or advising on annual financial statements for a Maltese company. Trigger on phrases like "annual accounts Malta", "financial statements Malta", "Companies Act filing", "MBR filing", "balance sheet format", "profit and loss format", "directors' report", "audit exemption Malta", "small company Malta", "abridged accounts", "year-end adjustments", or any question about preparing statutory accounts under the Malta Companies Act (Cap. 386). Covers reporting frameworks, size thresholds, required statements, P&L and balance sheet formats, notes disclosures, filing deadlines, and audit requirements.
MTty-2025
Use this skill
This skill is open source and free to use in any AI agent. Copy it, download it, or clone the repo. If you find an error, report an issue — a licensed accountant will review.