Good news for small companies, but the paperwork still wants a word

A few days ago, we had a client ring us in a mild panic. “Do we still need an audit this year?” They’d heard something was changing, but no one was sure what it meant. If that sounds familiar, here’s the simple version.

From 1 January 2025, some companies registered in Malta (excluding regulated companies) may benefit from reduced audit requirements under Article 185(2) of the Companies Act. In short, very small companies might move from a full audit to a lighter review, or in some cases, no audit at all.

The thresholds to watch

To qualify, your company must not exceed these limits for two consecutive periods.

• Balance sheet total €46,600
• Revenue €93,000
• Average employees 2

That “two consecutive periods” part matters. One unusually quiet year won’t automatically change your requirements.

What happens next?

• Meet 1 out of 3 criteria — a full statutory audit is required
• Meet 2 out of 3 criteria — a review engagement is required (ISRE 2400 Revised)
• Meet 3 out of 3 criteria — no audit is required

Important note: No audit does not mean no compliance

Even if you qualify for the audit exemption, you must still prepare and submit financial statements, and tax return compliance still applies. Your records still need to make sense, reconciliations still need to be done, and figures still need to be supported. The difference is simply that the financial statements are unaudited, not optional.

In fact, when there’s no audit, good bookkeeping becomes even more important — because issues often pop up later, usually when you’re applying for a bank facility, transferring shares, or responding to a tax question.

How can we help?

At Experia, we can quickly check where you fall under the thresholds and guide you on whether you need an audit, a review, or qualify for the exemption — and we can support you with the financial statements and tax compliance either way.

Want to know what applies to your company for 2025?

We’ll give you a clear answer, with minimal jargon and zero spreadsheet theatre.
Get in touch (+356) 2776 3114 • (+356) 9987 3855 • elvira.tabone@experia-malta.com • (+356) 9982 9804 • christienne.spiteri@experia-malta.com