Tourism is one of the most important sectors of the Maltese economy, as the country is renowned for its landscapes and the fact that it attracts thousands of tourists every year. Opening a hotel in Malta can bring substantial benefits, among which a high return on investment is one of the main advantages.
From an accounting point of view, opening a hotel implies registering a Maltese company that needs to comply with the requirements of the Company Law and all financial regulations imposed by the authorities in this country. This means that it must also be audited.
If you have a hotel business and need audit services, our accounting firm in Malta is at your service.
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Types of audits that can be completed for hotels in Malta
There are several types of audits that can be undertaken when it comes to hotels in Malta. They can be divided into two categories: the first one covering the requirements imposed by the Companies Act and the second one covering industry-specific requirements.
Giving managers specific recommendations for enhancing internal controls falls under the rules of internal audits. However, considering directors and managers have various duties, among which drafting fair, and accurate financial reports while ensuring compliance with laws and regulations, you can rely on us for customized audit services in Malta.
Our accountants and auditors in Malta can help with the following:
- statutory audits;
- independent audits;
- financial statement audits.
We can also offer various accounting services for all types of companies in Malta.
Audit requirements for Maltese hotels
Unless a hotel falls under the category of companies that require to undergo annual audits, these must appoint auditors for each meeting of the shareholders. The auditor will participate in the shareholders’ Annual General Meeting and will have access to all financial documents of the company in order to prepare the annual report that must be filed with the Trade Register.
The following documents need to be verified during an audit in Malta:
- all amounts of money entering and exiting the business during a financial year;
- expenses receipts issued and received by the hotel;
- the balance sheet containing the assets and liabilities of the business;
- all financial statements prepared by the company’s directors.
It should be noted that these documents must be put at the disposal of auditors who will verify the integrity and correctness of the data found in the statements based on which they will prepare a report that will accompany the aforementioned financial papers when submitted with the Maltese Companies Register and the tax office.
Our auditors in Malta are at your service if you need assistance in audit-related matters.
Large and public companies are required to prepare a full set of financial statements in line with IFRS because they are exempt from GAPSME. Companies in certain industries must also prepare financial statements using the IFRSs that the EU has adopted. We can also offer audit services in Malta in these particular situations.
It is likely for small business owners to manage payroll. However, this task may be delegated to an accountant or HR manager as the company grows and the work becomes more time-consuming. For this purpose, we offer tailored assistance related to payroll in Malta, so that clients can focus on the emerging activities of their enterprises.
What to consider when undergoing an audit for a hotel in Malta
The auditor’s report must be accompanied by the financial statements, an income statement, and the hotel’s balance sheet which must be prepared in accordance with the International Financial and Reporting Standards or the General Accepted Accounting Principles (GAAP).
The timeframe for filing the accounting papers after being audited are as follows:
- for private companies, the audited financial statements cannot be submitted later than 10 months after the end of the financial year with the tax authorities;
- a copy of these statements must also be filed with the Trade Register within 42 days from the filing date with the tax office;
- annual returns must also be filed with the Companies House no later than 42 days from the company’s incorporation date every year.
If you are a foreign investor with a company in Malta and need accounting services, you can rely on our specialists who can provide tailored assistance, including with personnel administration.
Payroll administration must gather information from across the organization since it interacts with every employee. This material is verified for accuracy and compliance with corporate guidelines. After ensuring that all the data is accurate, personnel must input it into the system where it will be processed, adjusted for taxes and deductions, and used to calculate the employees’ net salary as well as the fees the business must pay to the relevant authorities. If you need support in such matters, you can rely on us for payroll services in Malta.
The Quality Audit Scheme for Maltese hotels
Malta is one of the most appealing touristic destinations in Europe which is why in 2006 the Malta Tourism Authority has enabled the Quality Audit Scheme as a means for certification of all types of establishments falling under the Travel and Tourism Services Act. This certification will help hotels obtain higher scores and rankings which will boost tourism in the insular state.
If you need more information on the audit services our accounting firm in Malta can provide for you, do not hesitate to inquire with us.
Tourism statistics in Malta
Malta has a large number of accommodation units in large cities and towns which have created a path to success for companies operating in the tourism sector. According to recent statistics:
- the total inbound tourist arrivals reached 2,771,888 at the level of 2019;
- total tourist expenditure reached 2,220,627 euros the same year;
- July to September represented the most successful months with a total number of arrivals of 927,358;
- the United Kingdom was the country where most of the guests came from – 649,624 visitors.
If you want to set up a hotel business in Malta and need information or services related to its accounting, do not hesitate to contact our firm.