23.07.2025
Overview
Legal Notice 139 of 2025, (Audit Exemption Rules, 2025), enacted under the Income Tax Management Act (Cap. 372) was published on 15th July 2025, introducing new conditions under which new and existing companies can be exempt from mandatory statutory audits under Maltese law and setting out alternative treatments and incentives[1]. The key provisions apply to accounting periods starting on or after 1st January 2024, with particular rules effective from 1st January 2025.
Merchant Shipping Companies
Companies registered under the Merchant Shipping Act that benefit from an exemption provided for in Regulation 64, subject to the thresholds established therein are exempt from the audit requirement, subject to the small group criteria.[2]
Conclusion
These rules significantly streamline compliance for eligible companies by reducing compliance costs and procedures for small companies that meet the stipulated criteria, whilst preserving regulatory safeguards and encouraging small and medium-sized enterprises in Malta.
If you are interested in receiving more information about the 2025 Audit Exemption Rules, and/or to enquire on how your company may benefit from these Rules, feel free to reach out to our Shipping and Corporate Teams on shipping@dingli.com.mt and corporate@dingli.com.mt respectively.
[1] L.N. 139 of 2025 Income Tax Management Act (Cap. 372) (‘the L.N. 139’), https://legislation.mt/eli/ln/2025/139/eng
[2] Article 7(1) of the L.N. 139