🇩🇪 🇪🇺 Legislation17 Apr 2024
Germany raises company size thresholds by about 25%, applying to 2023 accounts
An amendment to the German Commercial Code (HGB) in force from 17 April 2024 raised the money thresholds for company size classes by about 25%, implementing the EU's 2023 size-criteria directive. Companies could apply the new thresholds already for their 2023 accounts. The Government estimated about 52,000 companies would move into a smaller class.
The Federal Cabinet approved the change on 17 January 2024, and the amendment came into force on 17 April 2024. It implements EU Directive 2023/2775 adjusting the size criteria for companies.
What changed
- The balance-sheet total and turnover thresholds that decide whether a company is micro, small, medium-sized or large under the HGB rose by about 25%, for inflation.
- Companies could apply the new thresholds to financial years beginning after 31 December 2023, and could also choose to apply them to the 2023 financial year.
- The Government estimated about 52,000 companies would benefit, saving around €650 million a year in reporting costs.
Who is affected
German companies near a size boundary, which may face lighter accounting, audit and publication duties.
What to do
Re-test each German entity's size class against the new thresholds.