Company Tax Return Cycle

Last Updated: 07/11/2023

​Companies are charged at a flat rate of 35% on the net chargeable income for each year of assessment upon their income for the basis year. In certain circumstances, a company may opt to have a change in accounting date which would not coincide with the calendar year by submitting a written request to the CFR.

Tax is charged for every calendar year (year of assessment). The basis period for companies is the financial year ending in the year preceding the relevant year of assessment. Chargeable income for any year of assessment is based on the accounting profits before tax for the basis period as adjusted for tax purposes in accordance with the provisions of the Income Tax Act and the respective Subsidiary Legislations. There are certain exemptions including but not limited to those found in Article 12 of the Income Tax Act as well as those in relation to income tax on capital gains found under Article 5.

Companies registered in Malta are required to keep proper and sufficient records to enable their income and allowable deductions to be readily ascertained. Information on the requirement of accounting records and the period of retention can be found in Article 19 of the Income Tax Management Act.

​Change in Accounting Dates (Article 11 of the ITA)

Companies may request in writing to change the accounting periods. These companies can be divided into two (2) categories:

• initial cases; and
• continuing cases.

The maximum extension that can be given is by one (1) year of assessment.

Initial Cases are usually companies who commence their trading activity late in the year and thus it would be inconvenient for them to prepare audited financial statements for just a couple of months.

Continuing Cases are companies which have been operative for more than one (1) year and may request a change in the accounting period for a number of reasons. One of the most common instances is a company which forms part of a Group and would prefer its accounting period to come in line with other company/companies within the Group.

Submission of a Company Income Tax Return 

The Tax Return and Self-Assessment for companies is to be submitted within nine (9) months from the end of the company’s financial year as specified below.  Companies with financial year ending between 1st January and the 30th June have a deadline for submission of the tax return by the 31st March of the following year. The remaining companies with year ending 31st July onwards have a deadline of nine (9) months following end of year.

The extensions for the Electronic filing of tax returns only apply to the submission of the online return itself, and not to tax payments. Manual tax returns and all tax payments must reach the department by the due dates contemplated by the Income Tax Acts.
  

Companies Tax Returns can only be submitted by registered Tax Practitioner. Access on Companies Tax Return Services can be automatically granted by submitting a CFR02 online. The Tax Practitioner needs to keep a copy of the CFR02 which is duly signed by the Company Director. Once access between Tax Practitioner and client has been established, Tax Return may be filed through CFR online Services for Tax Practitioners​ and an acknowledgement of the submission is automatically issued.

Social Security Contributions and Provisional Tax Payments

Companies are also required to pay social security contributions as well as make provisional tax payments. Click on the following link​ to read more.  
 

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