Late Filing Penalties: Annual Return & BO Forms
The Malta Business Registry (MBR) enforces penalties for late filings to encourage timely compliance. These penalties apply to Annual Returns and Beneficial Owner (BO) Forms.
Annual Return Penalties
- Default penalty: €25
- Daily charge: €0.25 until filing
- Maximum penalty: €2,329.37 per annual return
BO Form Penalties
- Default penalty: €500
- Daily charge: €5 until filing
- Maximum penalty: €2,325 per year
These penalties can accumulate substantially if filings remain outstanding for extended periods. Companies undergoing liquidation are exempt from filing these forms if the due date falls after the liquidation submission date.
Late Filing Penalties: Financial Statements
Annual financial statements face different penalty structures:
- Default penalty: €25
- Daily charge: €0.50 per day
- Maximum yearly penalty: €207.50
Penalty Summary
| Filing | Default Penalty | Daily Penalty | Maximum Penalties |
|---|---|---|---|
| Annual Returns | €25.00 | €0.25 | €2,329.37 per return |
| BO Confirmation | €500.00 | €5.00 | €2,325 per year |
| Audited Accounts | €25.00 | €0.50 | €207.50 per year |
Tax Penalties
Corporate tax filing penalties escalate based on months outstanding:
| Late Submission (Months) | Tax Penalty Per Return (€) |
|---|---|
| 0–6 | 50 |
| 6–12 | 200 |
| 12–18 | 400 |
| 18–24 | 600 |
| 24–36 | 800 |
| 36–48 | 1,000 |
| 48–60 | 1,200 |
| 60+ | 1,500 |
The €50 penalty applies if the return isn’t filed by the extended online deadline. Subsequent tiers are measured from the manual submission deadline. These charges are non-cumulative, with €1,500 as the maximum penalty per return.
VAT Penalties
Malta enforces multiple VAT compliance penalties:
Late or Failure to Register
Penalties equal to the greater of 1% of VAT due for the initial period or €20 monthly, capped at 20% of VAT payable or €250 if VAT is €2,000 or less.
Incomplete or Incorrect Returns
20% penalty on understated output VAT plus overstated input VAT, reducible to 10% if corrected before provisional assessment.
Invoicing and Record-Keeping Non-Compliance
Criminal fines ranging from €700 to €10,000, potential imprisonment, and additional penalties for endangered tax amounts (minimum twice the endangered amount with €1,000 floor). Daily fines for ongoing violations may apply.
Late or Non-Payment
Interest rates increased from 0.33% to 0.6% monthly (as of September 1, 2022).
Late Return Submissions
Greater of 1% of VAT due or €20 monthly delay, capped at €250 per return or minimum €50 where VAT due is under €250.
Criminal sanctions may apply in serious cases with potential imprisonment.
