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Financial statements audits
Financial statements audits
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Financial statement reviews
Financial statement reviews
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Financial statements compilations
Financial statements compilations
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IFRS
IFRS
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Audit quality monitoring
Audit quality monitoring
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Global audit technology
Global audit technology
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Systems and risk assurance
Systems and risk assurance
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General business consulting
General business consulting
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Market research
Market research
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Sustainability
Sustainability is indeed a broad concept. Aside from mitigating the environmental changes caused by the interaction of the industrial world and society with nature, social and governance matters are subjected to increased public and government scrutiny, calling for the promotion of a sustainable performance agenda.
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Business planning and performance improvement
Business planning and performance improvement
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Change and program management
Change and program management
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Business intelligence and analytics
Business intelligence and analytics
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Business valuation and litigation support
Business valuation and litigation support
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Business process outsourcing and consulting
Business process outsourcing and consulting
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Family business consulting
Our business solutions for family businesses center on alignment of all aspects of the family and business, including culture, vision, mission, values, governance, ownership, leadership, communication and policy development.
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Quantitative small caps
Grant Thornton has a wide professional network with a vast array of technical skills that is coupled with a drive to understand the business problem; we can set up the most efficient financial risk management structure that fits your underlying business structure and your risk appetite.
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Data analytics
Data analytics is the process through which businesses leverage data to gain actionable insights and enhance their performance. This is based on a solid foundation of well-organised and accurate data. Many businesses have a large amount of data at their disposal however, most of them do not have the expertise to analyse the available data.
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Bookkeeping & financial accounting
Bookkeeping & financial accounting
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Payroll and personnel administration
Payroll and personnel administration
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Direct and Indirect tax compliance
Tax compliance within outsourcing
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Compilation of financial statements
Compilation of financial statements
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Business process outsourcing
Business process outsourcing including back office and secretarial
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Family business consulting
Family business consulting
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Startups
Startups
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Company formation
Company formation
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BOR
Entities in Malta, including companies, partnerships, foundations, trusts and associations, have an obligation to disclose the ultimate beneficial owner/s (physical person) of the entities. A beneficial owner is defined as the individual (s) who ultimately owns or controls a legal entity or arrangement through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity.
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Internal audit
Internal audit
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Risk management and internal controls consulting
Risk management and internal controls consulting
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Governance and risk management
Governance and risk management
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Regulatory services
Regulatory services
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Risk modelling services
Risk modelling services
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Forensic and investigation
Forensic and investigation
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Compliance audit
A compliance audit is a detailed review which focuses on whether an organisation is in conformity with statutory laws as well as internal rules and decisions. This type of audit also assesses the effectiveness of an organization’s internal controls by identifying weaknesses in compliance processes whilst finding measures to enhance such processes.
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Citizenship by naturalisation
The Maltese Citizenship Act (Cap 188) establishes who may become a citizen of Malta by naturalisation, provided that the applicant satisfies the relative provisions.
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Citizenship for Exceptional Services by Direct Investment
With the continuously changing global dynamics and evolving geopolitics, there is an ever-growing number of highly-talented high-net-worth individuals who are willing to invest and relocate to give themselves and their family members the chance to broaden their horizons and become part of a welcoming community.
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Grant of Citizenship for Exceptional Services
Malta has enacted legislation which extends to individuals providing excellent or manifestly superior contributions in the fields of science, research, sports, arts and culture as well as people of exceptional interest to the Republic of Malta, the right to become Maltese citizens.
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Acquisition of citizenship by registration
The Maltese Citizenship Act (Cap 188) establishes who can register as a citizens of Malta. The Act was amended on 1st August 2007, this making it possible for second and subsequent generations born abroad to acquire Maltese citizenship by registration.
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Maltese Family Businesses Resource Centre
For over 30 years Grant Thornton’s advisory teams have assisted family businesses in navigating the challenges of leadership and succession across generations
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Grooming
Preparing the next generation for leadership and ownership is an integral part of any succession process. Grant Thornton can help formulate the necessary grooming plan for all the potential successors.
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Tax services
Using a combination of reason and instinct, we can work with clients to develop a strategy that helps them understand and manage their tax liability in a transparent and ethical way.
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Governance
Having a proper governance structure is essential to ensure that the family and business strategies are achieved. Grant Thornton can advise on this, and facilitate the implementation of the ideal governance structure based on the exact scenario.
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Ownership succession
Letting go of your family business is difficult for all owners and even more so for founders; however, in a family business the additional challenge presented by the family component increases the complexity of this process. Our team of family business advisors will ensure that such ownership issues are dealt with in an effective and structured approach.
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Exit strategies
There are many 'exit strategies' that need to be considered to minimise the risk of conflict. They can arise from the eventual exit of a family member from the ownership ranks and can have many causes. See how we can help.
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Management succession
By implementing our family business guidelines to family succession and a proper governance structure, the management succession process can be completed with minimal conflict and will result in the most competent successor being chosen.
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DORA Consultancy
Firms within the financial sector face a critical imperative to fortify their operational resilience in the digital sphere, particularly with the advent of the Digital Operational Resilience Act (DORA), set to take effect by January 2025.
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Cyber security Consultancy
Whether you are a multinational corporation, a small business, or an individual, the digital realm holds equal importance for us all.
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Digital Transformation
Digital transformation offers numerous benefits to organizations. From enhancing internal operational agility to accelerating return on investment (ROI), digitization simplifies manual processes and allows businesses to focus more energy on excelling in their industry. Build a solid foundation to fuel business reinvention and gain the flexibility you need to succeed.
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IT Audit and Assurance
Information systems strengthens an organisation’s financial and operational processes. Grant Thornton Malta strengthens your organisation’s need for IT and information assurance.
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Fintech and Innovation
At Grant Thornton we help innovative firms and entities operating in the fintech space launch new propositions and grow their business. We also help established businesses transform and take advantage of the fintech revolution.
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Case Studies
Digital transformation has transitioned from being an option to a necessity. The race is on... The question is, are you ready?
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Operational and financial restructuring and reorganisation
Operational and financial restructuring and reorganisation
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Recovery
Recovery
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Financial regulatory services
Financial regulatory services
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GDPR consultancy
The General Data Protection Regulations (GDPR) have transformed the way we handle personal data. This regulation is a game-changer for businesses operating within the EU, or the handling of EU citizens' data worldwide.
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Ship and aircraft registration
Ship and aircraft registration
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Medical cannabis licensing in Malta
A study published in 2018 by market intelligence and strategic consultancy firm Prohibition Partners, has forecasted that the European cannabis market will be valued €115.7 billion by 2028. According to the same study, while patient numbers are currently below 100,000 across the region, their number is set to grow to over 30 million in the next decade. In 2018 Malta introduced a bill to legalise the use of medical marijuana and attract companies willing to produce high-grade medical cannabis for the European market.
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Trust and trustee services
As an entrepreneur, business owner, parent or guardian, you will want to ensure that whatever happens in the future, the rewards from your hard work can be protected as efficiently as possible. Grant Thornton Fiduciaire Limited (Grant Thornton) understands this and provides a professional and holistic trust management service.
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Family trusts
The law establishes the requirement of a license for one to be able to act as a trustee subject to certain limited exceptions. One such exception is found in the Rules for Trustees of Family Trusts which provide for an exception to this rule where a trust is set up to hold property settled by a settlor or settlors for the present and future needs of family members or of family dependants who are clearly identifiable.
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Programmes
Grant Thornton is authorised and regulated by the Government of Malta to handle and submit applications for both citizenship applications as well as residence permits under the various residence programmes available in terms of Maltese law.
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Ordinary residency in Malta
Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit, including: Self-Sufficiency, Employment or Self-Employment, Family Members, Permanent Residence, Study Purposes.
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Qualifying Employment in Aviation Rule
Malta provides qualified persons employed in the field of aviation with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta. For a candidate to qualify, their annual income must exceed €45,000. This does not include the value of fringe benefits and applies to the derived income received from an eligible office.
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Qualifying Employment in Innovation and Creativity (Personal Tax) (Amendment) Rules, 2019
These Rules allows persons employed in a role directly engaged in carrying out, or management of research, development, design, analytical or innovation activities, to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Qualifying Employment in Maritime and Offshore Oil & Gas Industry Rule
Malta provides qualified persons employed in the field of aviation, with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Nomad Residence Permit
The NOMAD residence permit, which was launched in June 2021, allows third-country nationals who would normally require a Visa to travel to Malta, to retain their current employment based in another country whilst legally residing on the island.
![Applying for residence in Malta](/contentassets/e43f166d865b4fbbad981f6264867bd2/valetta3009-464.jpg)
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Direct international tax
Direct international tax
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Indirect international tax
Indirect international tax
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Global mobility services
Global mobility services
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Transfer pricing
Transfer pricing
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Estate planning
Estate planning
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Wealth advisory
Wealth advisory
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Regulatory and legal
Regulatory and legal
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Corporate tax services
Corporate services
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VAT
At its simplest, VAT is a tax on consumption and is a multi-stage tax (ie applied at every stage of the production process), which is applied to both goods (ie tangible property) and services. Additionally, although the tax is ultimately borne by the consumer (by getting included in the price paid), responsibility for charging, collecting and passing the tax on to the tax authorities, rests with the supplier.
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2018 Amendments of the Income Tax Act
The following is a brief overview of the new tax provisions introduced in 2018 by the Budget Implementation Act (Act VII of 2018) and other legislative enactments
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Mergers and acquisitions
Mergers and acquisitions
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ESEF Reporting
Our ESEF reporting service is tailored to assist listed companies in complying with the European Single Electronic Format (ESEF) requirements. As of 2020, ESEF is mandated for annual financial reports of issuers with securities listed on regulated markets. We provide services for mapping the taxonomy and generating audit/regulator-ready xHTML reports.
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Prospects MTF
As of 2016, small and medium-sized enterprises in Malta can access the capital markets through Prospects - a market of the Malta Stock Exchange (MSE) designed specifically for Small and Medium sized Enterprises (SME). Prospects offers a cost-effective opportunity for entities looking to raise up to €5 million per issue.
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Project financing
Project financing
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Due diligence
Due diligence
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Valuations
Valuations
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Foreign direct investment
Foreign direct investment (FDI) is the category of international investment that echoes the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy.
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Wholesale Securities Market
WSM is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange, combining the best of each partner’s processes and technical skills.
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Aviation
The Maltese Government is constantly remaining to improve the position as the best place to do business within the aviation industry through exhaustive tax agreements, powerful legislation, and many aviation professionals. This is the best time for airlines, financiers and aircraft owners to be located in Malta.
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Maritime
For Maritime, Grant Thornton provide direction with regards to VAT guidelines for yacht leasing, as well as ship and aircraft registration.
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Automotive
We offer a broad range of services relating to automotive, ranging from Transaction advisory, access to finance, business advisory, process and inventory management, tax advisory, audit and advisory, outsourced support services.
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Gaming Regulations
Malta recently overhauled the framework regulating the iGaming sector. Going forward operators will still be required to obtain authorisation to carry out regulated activities.
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Licensing Process
Prior to submission all applicants are advised to go through a pre-application process with one of the MGA’s Licensing Officers. This will ensure that the application has been correctly compiled and all the key ingredients are present.
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Malta Real Estate Investment Trust (REIT)
As part of the 2019 budget, the government has pledged to introduce a Real Estate Investment Trust (REIT) framework in Malta.
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The Markets in Financial Instruments Directive (MiFID) II
MiFID II aims to protect investors and make sure that financial markets operate in the fairest and most transparent way possible. Building on stock and investment trading regulation introduced in 2007 it sets to ensure a more integrated financial market.
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Fintech and Innovation
At Grant Thornton we help innovative firms and entities operating in the fintech space launch new propositions and grow their business. We also help established businesses transform and take advantage of the fintech revolution.
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Asset Management
At Grant Thornton we help innovative firms and entities operating in the fintech space launch new propositions and grow their business. We also help established businesses transform and take advantage of the fintech revolution.
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Banking
Grant Thornton combines local insight with global scale to help banks meet regulatory expectations, improve technology, and finance the right companies. If you’re looking for a partner in the banking industry, our expertise can make a difference
Malta introduced new regulations governing Virtual Financial Assets
The Virtual Financial Assets Act (The VFA Act), was set out to regulate the field of Initial Virtual Financial Asset Offerings and Virtual Financial Assets and to make provision for matters ancillary or incidental thereto or connected therewith.
Under the definitions of the Act, a cryptocurrency may be classed as a Virtual Financial Asset (VFA) and the Act provides a comprehensive set of rules that will both protect consumers and support the growth of the industry and its stakeholders. The Act outlines stringent requirements for those that are launching cryptocurrencies, as well as other service providers including brokerages, portfolio managers, custodian and nominee service providers, eWallet providers, investment advisors, and perhaps most crucially, cryptocurrency exchanges.
The VFA Act defines initial virtual financial asset offerings or as they are more commonly known, Initial Coin Offerings (ICOs) as 'a method of raising funds whereby an issuer is issuing virtual financial assets and is offering them in exchange for funds'. This definition underscores the central role of initial VFA offerings as a means of raising capital by selling virtual financial assets to investors.
The necessary license requirements and conditions which must be adhered to by individuals or entities who issue VFAs or who provide certain specified activities in relation to VFAs were also clearly defined.
The Act delineates the necessary regulatory framework for ICOs and VFAs and makes provisions for matters which are ancillary or incidental thereto. In addition, it regulates the type of VFAs which may be issued through an Initial VFA offering and admission to trading on a Distributed Ledger Technology (DLT) exchange, which must be made with a registered whitepaper to be delivered to the Malta Financial Services Authority as the competent authority. The Act also provides clear guidelines on what information such whitepaper should include, how collected funds may be used, and how due diligence on the individuals behind the fund-seeking entity is to be carried out. It also clearly clarifies that businesses will be liable to pay damages to anyone that loses money due to false statements contained in the whitepaper.
Initial VFA Offerings are defined as DLT-enabled methods for raising funds whereby an issuer, who must be a legal person duly formed in Malta, issues or proposes to issue a VFA in or from within Malta, and offers it to the general public in exchange for funds.
Both the VFAA and the Innovative Technology Arrangements and Services Act (ITAS Act) define a DLT as a digital or electronic database or ledger in which information is recorded, consensually shared, and synchronised across a network of multiple nodes and:
- is distributed, decentralised, shared and replicated
- may be public or private, permissioned or permissionless or a hybrid therein
- is immutable and protected with cryptography, and
- is auditable.
The Act also includes specific information and requirements which must be included in a whitepaper prior to the issue of an ICO, along with the manner in which advertisements relating to either an initial VFA offering or an admission of a VFA to trading on a VFA exchange shall be carried out.
Advertisements are referred to as being any form or medium of marketing activities disseminated to the public by means of any type of media which promotes the purchase of a VFA or the procurement of a VFA service including initial VFA offerings. The Act also includes applicable principles which must be applied by issuers of VFA in or from within Malta.
The Act defines a VFA as 'any form of digital medium recordation that is used as a digital medium of exchange, unit of account or store of value and that is not
- electronic money
- a financial instrument, or
- a virtual token.
Virtual tokens, or 'utility tokens', are DLT assets which have no utility, value or application outside of the DLT platform on which they were issued and may only be redeemed for funds on the platform directly by the issuer of the DLT asset.
The issuer of an ICO is required to appoint a VFA agent, who must be approved by the MFSA as the competent authority and will be tasked with specific reporting and monitoring obligations.
License requirements apply in relation to the provision by any person of a VFA service in or from within Malta.
The Act provides us with a list of such services, which include the rendering of services related to virtual financial assets, as follows:
- Reception and transmission of orders to buy, sell or subscribe for virtual financial assets and the transmission of that order to a third party for execution;
- Execution of orders on behalf of other persons;
- Dealing on own account;
- Portfolio management;
- Custodian or nominee services;
- Investment advice;
- Placing of virtual financial assets;
- The operation of a VFA exchange;
- Transfer of virtual financial assets.
Any entity that offers a VFA or is classified as a VFA service provider is required under the new rules to apply for a license from the MFSA through the guidance of a registered VFA agent.
The MFSA has also developed a financial instrument test that will determine whether a product or service would fall under financial services legislation, or whether it is covered by the scope of the VFA Act. Despite not yet being made official, the MFSA has reiterated the fact that any issuers in Malta must carry out a legal assessment and notify the Authority accordingly should any authorisation be required.
Read more about the financial instrument test developed by MFSA.
Upon acquisition of a VFA license, these operators will be allowed to facilitate the exchange of virtual financial assets such as tokens or coins, or provide services supporting the VFA sector. In this respect, Grant Thornton will be applying for this licence as soon as it is made available.
ICOs which relate to VCs that do not qualify as financial instruments
Under the VFA rules, ICOs issuing virtual currencies that do not qualify as financial instruments are still subject to minimum transparency requirements and other obligations of the relevant parties involved. Certain parameters of the legislation applicable to initial public offerings shall still be adhered to by issuers of ICOs, even if the VC does not qualify as a financial instrument. These principles include the necessary information that must be communicated to the investors in the Whitepaper and additional transparency requirements when the issuer intends to trade the VC on an exchange.
The VFA Act creates a regulatory environment that will provide much sought after legal certainty and lucidity in both the local and international crypto community. The Act establishes a robust compliance and enforcement regime in Malta and lays down the necessary foundations to strengthen investor protection and curb market abuse and further enhances and solidifies Malta's budding reputation as a premier blockchain jurisdiction.
View the full Malta Virtual Financial Assets Act
How can Grant Thornton help?
In order to apply for a VFA License, one must do so via an agent that has been approved by the MFSA. Grant Thornton qualifies for such role, and we would not only be able to apply for the license on your behalf, but we also operate a multi-disciplinary Fintech and Blockchain Advisory Team composed of specialists in different areas to assist in all other related matters.
From tax advisory to choosing an appropriate company structure, legal advice for blockchain start-ups to the launch of DLT platforms, or even ancillary services for ICOs, Grant Thornton is able to guide you from start to finish.
As a member firm of Grant Thornton International we offer clients a flexible, responsive service with the breadth and depth of skills to appeal to a variety of markets and with the experience, knowledge and expertise to undertake specialised, sector-specific work.
Our clients can access the knowledge and experience of more than 42,000 people in over 130 countries and consistently receive a distinctive, high quality and boutique service wherever they choose to do business.
Whether you are planning on setting up a cryptocurrency exchange, or considering relocating your payment platform to Malta, we are here to offer legal, financial, and corporate services related advice that will make your transition or setup process as smooth as possible.