Malta introduces new audit exemptions for startups, micro-enterprises, and shipping companies under the Audit Exemption Rules 2025.
Malta has gazetted Legal Notice No. 139 of 2025 on 15 July 2025, enacting the audit exemption rules 2025.
Effective from 1 January 2024 for startups and micro-enterprises, and from 1 January 2025 for companies under the Merchant Shipping Act, the rules simplify audit requirements for small entities.
Startups may waive audit obligations for their first two accounting periods if all shareholders hold MQF level 3 or higher qualifications, the company is established within three years of obtaining such qualifications, and annual turnover does not exceed EUR 80,000. Alternatively, a 120% deduction of the auditor’s cost (capped at EUR 700) may be claimed.
Micro-enterprises meeting all of the following thresholds qualify for full audit exemption: turnover up to EUR 93,000, total assets up to EUR 46,600, and up to two employees. Those meeting two of the three thresholds require a review report instead.
If part of a group, the group must qualify as a small group. Shipping companies are exempt if their turnover does not exceed EUR 12 million, their assets do not exceed EUR 6 million, and have up to 50 employees, subject to the same small group requirement.
