Malta Company Audit Report Waiver and Deduction Rules
John Huber & associates
05 November 2017
The Government of Malta has issued new rule, in virtue of which a new deduction will be given for income tax purposes to companies which will have effect as from year of assessment 2018 by means of Legal Notice 306 of 2017
The companies which will qualify for such a deduction are those companies whose annual turnover does not exceed €80,000 or a pro rata amount if the relevant accounting period is other than twelve months. Companies which do not avail themselves of the audit report waiver provided for in the second proviso to Article 19(4)(a) of the Income Tax Management Act, may claim a deduction against its income of 120% of the audit fees incurred.
The deduction shall be applicable for the first two accounting periods of a newly registered company whose sole shareholders are all individuals in possession of educational qualifications refer to the successful completion of a course of study at MQF level 3, or higher, as recognized by the Malta Qualifications Recognition Information Centre who would have set up the new company within three years of obtaining the said qualifications. The deduction may not exceed €700 in each accounting period.