All Maltese companies registered with the Registrar of Companies are required to prepare annual accounts and file audited financial statements with the Malta Business Registry. Furthermore, the Maltese Income Tax Act requires the annual income tax return for all companies to be submitted based on audited financial statements.

For financial periods starting on 1 January 2016 or after, the accounting principles applicable in Malta are the General Accounting Principles for Small and Medium Entities (“GAPSME”). Such standards require less disclosure requirements than International Financial Reporting Standards (IFRS) as adopted by the EU. However, in order to qualify for the GAPSME, a company must not be considered a large entity, in which case IFRS, as adopted by the EU, would need to be applied. Nevertheless, the directors may resolve to adopt IFRS as adopted by the EU for their companies, should they wish to do so for other reasons.