Malta’s Audit Exemption Rules, introduced via Legal Notice 139 of 2025, represent a major development in the way small companies handle statutory reporting. Effective for accounting periods beginning on or after 1 January 2024 — with Rule 6 applying from 1 January 2025 — the new framework simplifies compliance for qualifying businesses. 

At GCS Malta, we’re here to help you understand the implications and unlock potential benefits for your company. 

Audit Exemption for New Companies 

Newly incorporated companies can benefit from an audit exemption for their first two accounting periods, provided specific conditions are met. 

What’s New? 

Historically, most companies in Malta were subject to a full statutory audit, regardless of size. The new rules introduce clear thresholds that determine whether a company must: 

• Undergo a full audit 
• Opt for a review engagement (limited assurance)
• Be exempt from both audit and review 

This reform is part of Malta’s broader effort to reduce compliance burdens for micro-enterprises while maintaining financial transparency. 

Who Qualifies? 

Private limited companies may qualify for audit exemption if they fall within the micro entity definition, meaning they do not exceed more than one of the following thresholds: 

Compliance requirements based on thresholds met: 

Sector Spotlight: Shipping Companies 

Certain Companies regulated under the Merchant Shipping Act may also qualify for audit exemption using sector-specific thresholds: 

• Turnover: ≤ €12 million
• Total Assets: ≤ €6 million
• Employees: ≤ 50 

How GCS Malta Can Help 

We support your business by: 

• Assessing eligibility under the new thresholds
• Preparing unaudited or reviewed financial statements
• Advising on when an audit may still be strategically beneficial
• Managing compliance with the MBR and tax authorities 

 Ready to assess your eligibility? Contact GCS Malta today to make the most of this new framework.