Europe – The delegated Directive amending the size classes for corporations that fall under the scope of the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy was officially published.
On December 21, 2023, the Delegated Directive (EU) 2023/2775 was published in the Official Journal of the European Union. This brings significant changes to the thresholds for capital companies and equivalent partnerships.
Here are the key adjustments:
Micro Enterprises:
Balance Sheet Total: ≤ €450,000
Turnover: ≤ €900,000
Employees: Unchanged
Small Enterprises:
Balance Sheet Total: ≤ €5,000,000
Turnover: ≤ €10,000,000
Employees: Unchanged
Medium-sized Enterprises:
Balance Sheet Total: ≤ €25,000,000
Turnover: ≤ €50,000,000
Employees: Unchanged
Large Enterprises:
Balance Sheet Total: > €25,000,000
Turnover: > €50,000,000
Employees: Unchanged
In addition, EU Member States are allowed to set individual thresholds for small enterprises beyond the mentioned ones. However, these must not exceed €7,500,000 for the balance sheet total and €15,000,000 for turnover.
Next steps: Member States have until December 24, 2024, to transpose this delegated directive into national law. The application of the new regulations is effective for financial years beginning on or after January 1, 2024. Companies, with the consent of Member States, may apply these provisions to financial years beginning on or after January 1, 2023.
Source: European Union