Internal & External Audits

Audits are classified as external or internal audits. An external is required for all companies and is required by the MFSA and Tax Department to obtain a true and fair view of the company’s financial position for each year. An internal audit is on the other hand an audit which is carried out at the discretion of the management and which is not obligatory but which helps detect fraud and assess the internal control function of a business. The first step to an external audit is that of appointing an independent and external auditor. Once this is done, an audit plan is set, and the accounts and extended trial balance is presented by the client’s management team to the auditor. The auditor then sets his or her audit plan and requests further documentation. Here at Ennesse we undertake to complete audits within one to two months from the date upon which the accounts are presented to us as independent auditors. When we are engaged as internal auditors, we work hand in hand with our clients to understand the processes and cycles of their business, and we then implement control mechanisms and standard operating procedures which in turn help to create a level of control within their environment. These established procedures are then once again tested and the personnel are held accountable for breaches in such internal controls. Tests of internal control also help to provide more peace of mind both to the management team, but also the external auditor, who may choose to rely on some of these internal control results. Weaknesses in internal controls can lead to loss or revenue, increased costs, fraud, incomplete records, lack of audit trail and an unstable organisation which may be destined to fail. Positive and established internal controls do the opposite and help our clients to grow and focus more on their core competences whilst delegating with accountability.

VAT

Value Added Tax commonly referred to as VAT, is the indirect tax which is due on the consumption of products or services by the end customers or between one business and another. The computation of output less input VAT in any business will give rise to the VAT obligation. VAT returns are received monthly, quarterly or yearly depending on the client’s business and they are due to be filed with the VAT Department within one and a half months from the date of the period closure. We handle such submissions both in manual or online format on behalf of our clients after having computed their management accounts for that same period. We ensure that all input VAT and output VAT has been correctly accounted for and that all reports issued for any VAT period, refer to documentation stored in our filing system, which is referenced and therefore easily traceable in case of any investigation. We cater both for VAT Exempt clients as well as those who opt into the Vatable System.

Tax Planning

We also provide tax services by computing the amount of tax that needs to be paid after completing both personal or company tax returns. Throughout the year, Provisional Tax is required to be paid in Malta, and we ensure that this is paid in good time too by notifying our clients each time. Apart from the computation of tax after a year end we are also engaged to help in terms of tax planning so that one can avail of various tax credit and schemes available as and when they are issued by Malta Enterprise or the Department of Inland Revenue. National insurance contributions are also paid for directors or self-employed individuals every 4 months in April , August and December coinciding with the payment of Provisional Taxes and we also ensure that our clients are informed of their precise obligations here too. There are three categories of personal tax in Malta these being single rates of tax, personal rates of tax or married rates of tax and two categories of NI Contributions being NI due as employed or as self-employed/self-occupied positions. Taxation on company profits on the other hand is taxed at a straight 35% unless such income is subject to FWT at 15%. Rental income in Malta can be declared under the 15% FWT rates of tax.