Malta Company Annual Obligations: Financial Statements and Tax Returns for International Businesses – The Complete Annual Compliance Guide 2025

The Reality of a Malta Company: More Than Just Tax Benefits

I still remember exactly the moment when I first saw my Maltese Limited on the screen. Setting it up was surprisingly easy—just two clicks online, documents via email, and I instantly had my EU company. What nobody told me beforehand: The real work only begins after incorporation.

A Malta Company comes with yearly obligations that go far beyond what you might be used to from German or Austrian companies. That’s because, as an EU jurisdiction, Malta must comply with EU compliance standards and ensure international transparency.

What Makes Malta Company Compliance Special?

Malta combines three separate regulatory layers that determine your annual obligations:

• Malta Financial Services Authority (MFSA) – for licensed activities
• Malta Business Registry (MBR) – for all companies
• Commissioner for Revenue (CFR) – for tax obligations

Each authority has its own deadlines, its own forms, and—you guessed it—its own quirks. Let me be upfront: Don’t underestimate the administrative effort involved. What sounds like an EU standard in theory is, in practice, quite a unique system.

Who Does This Apply To?

As soon as you found a Maltese Limited company, you’re automatically in the system. This includes:

• Private Limited Companies (Ltd.)
• Public Limited Companies (plc)
• Limited Liability Companies (LLC)
• Partnerships en commandite

Even if your company makes zero revenue or is completely dormant—the basic obligations remain. I saw this happen to an entrepreneur friend who wanted to let his Malta company rest for a while. Spoiler: Even a resting company cost him €1,200 a year in compliance fees.

Annual Accounts and Annual Return: Your Key Deadlines

The Annual Return is your most important yearly milestone. It’s a combination of annual accounts and a shareholder report, both of which must be submitted to the Malta Business Registry.

Annual Return: What Exactly Do You Need to File?

The Annual Return (Form AR1) includes several components, which I’ll break down here:

When Do You Need an External Auditor?

This is where it gets interesting: Malta has clear thresholds for the audit requirement. You need a statutory audit if your company meets at least two of the following three criteria in two consecutive years:

• Balance sheet total over €4.6 million
• Net turnover over €9.2 million
• More than 50 employees on average per year

For most international companies, this means: No audit required. Instead, you can have a so-called compilation prepared by a Maltese accountant, which is much cheaper.

Financial Statements: IFRS vs. Malta GAAP

When drafting your financial statements, you basically have two options:

1. Malta GAAP – local accounting standards (lower cost)
2. IFRS – international standards (more expensive but internationally recognised)

I recommend Malta GAAP if you just need local compliance. IFRS only makes sense if you have international investors or plan to sell your company later on. The cost difference is about €500-800 per year.

The Practical Process

Here’s how it typically goes: In January, you provide your accounting documents to your Maltese accountant. He drafts by March, you give feedback by April, and by the end of May everything is finished and filed. Allow at least 3-4 months lead time—Maltese accountants are thorough, but not fast.

Tax Returns in Malta: What You Really Need to Submit

Malta has an intricate tax system that confuses many international entrepreneurs. Let me walk you through the various tax returns you may need to file.

Corporate Tax Return (Form C)

Every Maltese company must file a corporate tax return—regardless of whether it made a profit. The deadline is 30 June for the previous calendar year.

The interesting thing about the Maltese system: Malta uses an imputation system. This means your company initially pays 35% corporate tax on all profits. Later, shareholders can claim part of this back through the refund system.

Understanding the Maltese Refund System

This is where things get a little complicated, but let me explain with a practical example:

Important: The refund is only granted if profits are distributed as dividends to shareholders who are tax resident in Malta or the EU. This is a crucial point that many miss.

Provisional Tax and Advance Payments

Malta requires advance payments on the estimated corporate tax. Here’s how it works:

• By 30 April: Provisional tax for the current year
• Quarterly: Advance payments (if expected profit exceeds €10,000)
• By 30 June: Final settlement through the corporate tax return

Pro tip: Don’t underestimate the provisional tax. I’ve seen entrepreneurs make conservative estimates in their first year, only to earn much more. This can result in hefty back payments plus interest.

VAT Returns—If You Are Liable for VAT

If your Malta company is VAT-registered (turnover over €14,000 or voluntary registration), you must also file quarterly VAT returns:

• Q1: by 20 May
• Q2: by 20 August
• Q3: by 20 November
• Q4: by 20 February (following year)

The Maltese VAT office is quite strict about timely submissions. Late filings incur a penalty of at least €100—per day.

Informational Returns: Social Security and Statistics

In addition to tax returns, you must file various informational returns:

1. FS3 Return – annual statistics for the NSO (National Statistics Office)
2. Social Security Returns – if you have employees in Malta
3. Intrastat Declarations – for EU trade in goods exceeding €150,000

These are often overlooked but are just as mandatory as the “major” returns.

Your Malta Compliance Calendar: Never Miss a Deadline Again

After three years with a Malta company I’ve learned: Organization is everything. Here’s my tried-and-tested annual calendar, feel free to steal it.

January–March: Accounts Season

January:

• Assemble all previous years accounting records
• Brief your accountant and set appointments for annual accounts
• Check beneficial ownership forms (if any changes)

February:

• Submit Q4 VAT return (by 20 February)
• Request draft financial statements from accountant
• Submit FS3 return to NSO

March:

• Review and finalise financial statements
• Prepare directors report
• First provisional tax estimate for the current year

April–June: Tax Season

April:

• Submit provisional tax (by 30 April)
• Prepare annual return to submit to MBR
• First advance payment (if required)

May:

• File Q1 VAT return (by 20 May)
• Submit final annual return
• Prepare refund application (if dividend distribution is planned)

June:

• Submit corporate tax return (by 30 June)
• Second advance payment
• Compliance review: Have you met all deadlines?

July–December: Ongoing Compliance

My Digital Setup for Perfect Compliance

I use a simple but effective system:

1. Google Calendar with all deadlines (6-week advance reminders)
2. Dropbox folders with subfolders per year and authority
3. Excel spreadsheet for tracking costs and updates
4. WhatsApp group with my Maltese accountant for quick questions

It may sound old school, but it works better than any fancy compliance software I’ve tried.

Costs and Effort: What Compliance Really Costs You

Let’s be honest: Malta company compliance isn’t cheap. But I’ll show you what you really need to budget for, and where you can save.

Annual Base Costs (Non-negotiable)

Total basic costs: €1,945–2,945 per year

Additional expenses (depending on your situation)

• VAT registration and returns: €200–400 per year
• Statutory audit (if required): €2,500–5,000
• Tax advisory for complex structures: €150–300/hour
• Nominee director service: €1,000–2,000 per year
• Bank account maintenance: €300–600 per year

How to Save (Without Compliance Risks)

After several years I’ve learned a few tricks:

1. Bundled services: Many providers offer discounts if you book annual return, tax return, and company secretary as a package. Savings: €200–400 per year.
2. Do your own bookkeeping: If you keep your own tidy accounts and only have the financial statements prepared, you save €300–500. Important: Malta also accepts German accounting software such as Lexoffice or Datev.
3. Provisional tax timing: Conservative estimates avoid back payments and interest. Better to estimate low and pay later, rather than overpay in advance.
4. Avoid VAT registration: If your turnover is just under €14,000, avoid voluntary VAT registration. That saves you €400 a year plus extra paperwork.

Hidden Cost Traps

Watch out for these often-overlooked items:

• Penalty fees for late filing: €100–500 per document
• Apostille costs for overseas documents: €50–100 per document
• Banking compliance: Extra KYC updates cost €200–300 yearly
• Beneficial ownership updates: €85 per change

ROI: When Is It Worth the Effort?

Honest talk: With annual profits under €50,000, a Malta company rarely makes financial sense. The compliance costs eat up your tax savings. Here’s the break-even calculation:

The Malta structure only becomes financially worthwhile with annual profits of about €40,000–50,000 or more.

The 7 Most Common Compliance Mistakes (and How to Avoid Them)

Over the past years I’ve guided many German and Austrian entrepreneurs on their Malta adventures. I keep seeing the same mistakes. Here are the top 7—and how to avoid them.

1. Not Keeping Beneficial Ownership Forms Up to Date

Mistake: Many people forget to update their BO forms after changes. Changes in shareholders, new powers of attorney, address updates—all must be reported within 15 days.

Consequence: Fines from €200–2,000 and possible deletion from the companies register.

How to avoid: Keep an Excel list of all relevant persons and their data. Set quarterly reminders to check for changes.

2. Ignoring Substance Requirements

Mistake: Since 2019, EU-wide anti-tax avoidance rules apply. Many Malta companies have zero economic substance in Malta—which is now a problem.

Consequence: Reclassification as a German or Austrian company and tax consequences back home.

How to avoid: Ensure at least minimal local substance:

• Local business address (not just a mailbox)
• Local company secretary with real authority
• Regular board meetings in Malta
• Local bank account with actual transactions

3. Setting Provisional Tax Too Low

Mistake: Conservative provisional tax estimate, then earning much higher profits.

Consequence: Back payments with 8% annual interest. With €50,000 in overdue tax, that’s quickly €4,000 extra.

How to avoid: Use the advance payment option. It’s better to top up quarterly than to owe a large amount and interest later on.

4. Misunderstanding VAT Thresholds

Mistake: Many believe the €14,000 VAT threshold only applies to Maltese turnover. In fact, all EU B2C turnover counts.

Consequence: Unintentional VAT registration with retroactive payments and fines.

How to avoid: Track all your EU sales monthly. At €1,000 per month, you’re already near the threshold.

5. Confusing Corporate Tax and Income Tax

Mistake: Many believe that with 5% corporate tax in Malta, everything is sorted. But you are still liable for income tax in your country of residence.

Consequence: Double taxation or tax evasion if you ignore personal tax obligations.

How to avoid: Plan your personal tax residency as carefully as your company structure. For German residents, the Malta company often makes little fiscal difference.

6. Missing the Annual Return Deadline

Mistake: The 10-month annual return deadline passes quietly while you’re still waiting for your accountant.

Consequence: Default notice, fine, potential deletion of the company.

How to avoid: Set an internal deadline 6 weeks before the official date. Start the annual return process as early as January for the previous year.

7. Underestimating Banking Compliance

Mistake: Many underestimate the ongoing KYC requirements of Maltese banks. Yearly updates, source of funds documentation, business plan updates are standard.

Consequence: Account suspension or closure, often without warning.

How to avoid: Treat your bank like a key client. Communicate proactively, provide updates regularly, send all requested documents promptly.

Bonus Tip: Documentation Is Everything

The most important overall tip: Document everything. Maltese authorities love paperwork, and flawless records can save you if there’s ever a dispute. I keep a separate folder for each authority with:

• Copies of all submitted documents
• Email correspondence with timestamps
• Payment receipts for fees
• Screenshots of online filings

This has already saved me several times when authorities claimed they hadn’t received certain documents.

Practical Tips: How to Master Maltese Bureaucracy

After three years with a Malta company and countless dealings with authorities, I’ve developed a system that actually works. Here are my field-tested strategies.

Finding the Right Service Providers

Maltese accountants are not all the same. Here’s my checklist for choosing:

• MIA membership (Malta Institute of Accountants) is a must
• Specialisation in international clients—ask for German/Austrian references
• Response time test—send them a specific question via email and time their reply
• Fixed fee structure—avoid hourly billing for routine services
• Online portal for document exchange and status updates

My advice: Work with established firms, but not the biggest ones. The Big 4 are often overpriced and impersonal. Mid-sized practices with 5–15 staff usually offer the best value for money.

Efficient Communication with Authorities

Maltese authorities have their peculiarities. These rules have proven effective:

1. Always communicate in writing—phone calls disappear into thin air
2. Mention reference numbers in every email
3. Follow up after 5 working days—politely but firmly
4. Copy the supervisor if you get no reply after 10 days
5. Take screenshots of online portals—systems crash regularly

Banking: How to Nurture the Relationship

Malta banking is relationship-based. Here’s my approach:

Digital Tools for Better Organization

My proven tech stack for Malta compliance:

• Dropbox Business (not Google Drive)—Maltese lawyers/accountants usually use Dropbox
• DocuSign for signatures—saves postage and time
• LastPass for password management—you’ll need many online portals
• Calendly for booking appointments with service providers—shows professionalism
• Slack or WhatsApp Business for fast team communication

Emergency Strategies

What to do if things go wrong despite your planning?

Late submission:

1. File immediately, even if incomplete
2. Attach a cover letter explaining and providing a timeline for missing documents
3. Pay the penalty upfront—shows good faith
4. Follow up after 48 hours

Missing documents:

1. Use apostille services in Malta—faster than in Germany
2. Many authorities now accept digital certificates
3. Notarised copies as a temporary solution

Banking problems:

1. Set up a second account with a different bank (as a backup)
2. EMI solutions like Revolut Business as a bridge
3. Correspondent banking via a partner bank in your home country

Optimizing Your Timing: When Things Work Best

Malta keeps its own rhythm. These timing tips have worked for me:

• Appointments with authorities: Tuesday–Thursday, 9–11 am
• Email communication: Monday–Wednesday—nobody reads emails on Friday
• Complex applications: Never file in August—half of Malta is on holiday
• Banking: Appointments before 2 pm—bankers are in the caffè after lunch
• Deadlines: Always plan a 1-week buffer

Malta-Specific Etiquette

A few cultural tips that make a difference:

• Small talk is important—ask about the weather, family, festa plans
• Punctuality is valued—even though Maltese time is flexible
• Consider dress code—even in summer, avoid being too casual at government offices
• Show patience—pressure gets you nowhere, polite persistence works
• Respect local culture—a little Maltese opens doors

A Bonġu (Good morning) or Grazzi hafna (Thank you very much) will get you further than perfectly formatted paperwork.

FAQ: Frequently Asked Questions on Malta Company Compliance

Do I have to submit all documents in Maltese?

No, English-language documents are accepted everywhere. Maltese is only needed for a few selected official procedures. All corporate compliance can be handled in English.

Can I prepare the annual return myself?

Theoretically yes, but in practice I don’t recommend it. Maltese accounting standards are complex and errors lead to queries or rejections. A local accountant costs €800–1,200 but saves time and reduces risk.

What happens if I miss a deadline?

Malta imposes automatic fines for late filings. For the corporate tax return, that’s at least €100; for serious violations up to €2,000, plus possible deletion from the register.

Do I really need a Maltese company secretary?

Yes, this is a legal requirement. The company secretary must be a Maltese national or EU citizen resident in Malta. Cost: €200–400 per year for the service.

How does the refund system work if no dividends are distributed?

If no dividends are distributed to shareholders, you get no refund. The company then actually pays 35% corporate tax. The refund system only applies when profits are distributed.

Can I keep using my German accounting software?

Yes, Malta accepts international accounting standards. You can use DATEV, Lexoffice, or other German software and have the data converted for the Maltese financial statements.

Do I need to travel to Malta personally for compliance?

Basically no, but it helps a lot. An annual trip to Malta for bank meetings and appointments with authorities strengthens your local substance and solves many issues preemptively.

What’s different for dormant companies?

Dormant companies (no trading activity) must still file annual returns and corporate tax returns. The costs are the same, only the tax liability is zero. Simply doing nothing isn’t an option.

How can I identify reputable service providers?

Look for MIA membership for accountants, MFSA license for corporate service providers, and solid references. Avoid anyone who promises unrealistic tax savings or treats compliance as a side issue.

How much does a compliance breach really cost me?

Beyond direct penalties (€100–2,000), there are often indirect costs: banking issues, extra accountant hours, potential reclassification of tax residence. Real costs can quickly reach €5,000–10,000.