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Accounting for IT Companies in Malta

Accounting for IT Companies in Malta

IT is one of the most important industries in Malta mainly thanks to the large number of expats working from here. Setting up a business in this field comes with many advantages, among which the fact that they can service clients all over the European Union is one of the most important.

The establishment of an IT company can be completed fast and one of the most aspects to consider after its registration is related to its accounting.

Our Malta CPA accountants provide tailored accounting services for IT companies helping business owners remain focused on their activities. We invite you to read below how we can help you.

Services provided by our accounting firm to IT businesses in Malta

Before we present you our main services, we would like to point out that you can get in touch with us before you set up your company and obtain a quotation in order to establish your accounting budget.

Our accountants in Malta are at your service from the beginning with tax and VAT registration support, followed by:

  1. bookkeeping which is one of the main requested services by all types of companies in Malta;
  2. payroll and HR assistance in order for you not to have to deal with employment and social contribution issues. HR experts concentrate on a single topic, such as hiring or training new staff. HR generalists are in charge of several different responsibilities at once. Smaller organizations typically have one or two such employees, whereas larger businesses typically have a higher number of HR specialists focused on certain functions and services. However, there is also the possibility of outsourcing the HR and payroll in Malta.
  3. audits – our auditors in Malta can perform statutory and independent audits for all sizes of enterprises. Through different documented transactions, financial statements depict a company’s funding, investing, and operating operations. The financial statements are created domestically, so they must be carefully reviewed during an audit in Malta. Please contact us if you need support or if you are interested in a personalized service.
  4. preparation of financial statements and filing services;
  5. support in obtaining various industry-related incentives.

Our accounting firm in Malta can also advise IT business owners on the best structure for their companies from a financial point of view. At the moment, the private limited liability company is a good choice for both micro, small and medium-sized entities, as these are predominant in the IT market in this country. If you need accounting services in other countries, such as UAE, we can put you in touch with our local partners.

We can help you register with the Maltese tax authorities

No matter the type of structure selected, tax registration is the first mandatory step to complete after incorporating a business in Malta. This applies no matter if you are a sole trader or if you have decided on a corporate form for your enterprise. VAT registration is voluntary at this stage, however, there are 3 minimum stages from which this procedure becomes mandatory. The smallest one is having an annual turnover of 14,000 euros.

Our accountants can help you apply for a VAT number from the beginning of your operations so that you avoid fiscal issues when reaching the minimum threshold.

Bookkeeping and payroll services for IT companies

The IT sector is an important one and in Malta, it is associated with other industries, among which gaming and fintech. This is why it is expected for such businesses to issue many invoices that need to be kept track of and introduced into the accounting system.

From an invoicing point of view, bookkeeping is one of the most support we can offer our clients, as it requires using specific software. Moreover, we can also draft various other documents related to the invoices your company issues.

If you hire employees, dealing with the payroll which implies registration as an employer and of your employees and paying all the related contributions is of key importance. Make sure you don’t skip any of the formalities by using our accounting services.

Taxation of IT companies in Malta

Once registered for taxation, any company must start issuing invoices for the services or goods it provides, respectively sells. IT companies are subject to the following taxes in Malta:

The standard rate of the corporate tax is 35%, however, if you are a foreign owner of an IT company, you can benefit from very advantageous tax refunds which can lead to an important decrease in the overall tax rate applies. For more information, you can get in touch with our accounting experts in Malta who will explain what the refund system consists of.

The IT industry in Malta

Information, technology and communication (IT&C) is one of the leading economic sectors in Malta as it has several branches and is present in many other industries.

According to the Malta Information Technology Authority, this sector has an important contribution to the economy, as the latest numbers indicate that:

  • in 2018, Malta ranked 12th among all EU states in the Digital Economy and Society Index;
  • iGaming and fintech are its main subsectors and they contribute with 15% of the Gross Domestic Product;
  • these also employ around 10,000 people.

If you want to set up or have an IT business and need accounting services in Malta, do not hesitate to rely on our specialists for a customized offer. Select the services you need and contact us anytime!