Malta’s Audit Exemption — From “On Paper” to Reality

For many years, Malta technically allowed certain small companies to claim audit exemption. In practice, however, the requirement to submit audited financial statements for tax purposes meant that most companies still had to undergo a statutory audit. The 2025 Audit Exemption Rules have now changed that reality. For the first time, Malta has a fully workable audit exemption regime that genuinely removes the statutory audit requirement for qualifying micro-entities.

This webinar explains what the new framework means in practice. Participants will gain a clear understanding of the qualifying criteria, the role of review engagements and accountant involvement, and the practical steps companies and practitioners must follow when applying the exemption — from assessing eligibility and documenting directors’ declarations to preparing and filing the appropriate financial statements and reports.

The session then moves beyond the rules to explore the wider implications of operating in an audit-exempt environment. What replaces the discipline and credibility traditionally provided by audit? How does audit exemption affect governance, fraud risk, financing and stakeholder confidence? When does a voluntary audit remain the wiser strategic choice?

Designed for directors, accountants, auditors, bankers and business owners, this webinar offers a practical and balanced perspective on how Malta’s new audit exemption reshapes assurance, accountability and trust in the SME sector.

The Speaker

Mario P Galea is a certified public accountant holding a warrant to practice both as an accountant and as an auditor. Currently practising as a business advisor providing governance oversight and advisory services to businesses and corporations. Serves as an independent non-executive director on the boards and audit committees of various listed companies in the financial and commercial sectors. Mentor and advisor to family businesses. Founder, managing partner and chairman of accountancy and audit firm EY in Malta until retirement in 2012. Specialised in auditing and assurance which he has practiced for 35 years in Malta and abroad. Lectured in auditing, assurance and professional and business ethics and led several training courses. Speaker at various business and professional conferences in Malta and abroad. Assisted businesses in several areas particularly relating to governance, accounting and systems of control. Served as President of the Malta Institute of Accountants and for many years formed part of the Accountancy Board which is the accountancy profession regulator in Malta. Served on various professional committees in Malta and abroad such as the council of the Federation des Experts Comptables (FEE) in Brussels (now Accountancy Europe). Member of the Ethics and Regulatory committees of the Malta Institute of Accountants in Malta.