Beginning 01 July 2024, Ireland will implement changes to the turnover and balance sheet thresholds for  Micro, Small and Medium categories of companies in the country. This follows the signing of the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024. 

The regulations amend several sections of Ireland’s Companies Act 2014. 

The relevance is that Micro and Small companies may be entitled to claim an exemption from the general requirement that a company’s annual financial statements must be audited.  In addition, the amount of information that needs to be included in the financial statement varies depending on whether a company is in the Micro, Small or Medium category.

According to Ireland’s Minister for Enterprise, Trade and Employment, Peter Burke, the new regulations  will “maximise the benefit of the reduction in reporting obligations and cost burden to companies, and to make a real difference in easing the cost of doing business, especially for our small companies, in key sectors, across the country.”

The new thresholds will apply for the financial years commencing 01 January 2024. Companies will also have the option to apply them from 01 January 2023, but only in specific circumstances.  Effectively, the new thresholds will allow more companies to qualify for the reduced reporting and regulatory requirements in Ireland. 

Below is a comparison of the old and new thresholds for different company categories.

What measures should Irish companies take to benefit from this ‘threshold change’?

• Financial records should be reviewed to determine whether a company qualifies as either Micro, Small or Medium under the new thresholds.
• Companies should ensure that they are taking advantage of the applicable reporting and regulatory exemptions for their category of company.

Bolder Group can help

We can advise on all aspects of the preparation of a company’s financial statements and annual return that have to be submitted to the Companies Registration Office.

For more information about the changes and how these can affect your business in Ireland, please connect with Bolder Group’s Ireland team.

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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