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As part of the transposition of a European directive (EU 2023/2775 of 17 October 2023), Belgian legislation is raising the size criteria that define micro, small, medium and large enterprises as well as groups.
25% INCREASE
Who are the “small companies”?
Now considered as "small companies" are those that exceed two of the following criteria as of the closing date of the last accounting year:
- Average annual number of workers: 50 (unchanged).
- Annual turnover excluding VAT: €11.250.000 (instead of €9.000.000).
- Total balance sheet: €6.000.000 (instead of €4.500.000).
And the “micro-companies”?
By "micro-companies", it is understood to mean "small companies with legal personality that are neither subsidiary nor parent companies and that do not exceed more than one of the following criteria on the balance sheet date of the last closed accounting year":
- Average annual number of workers: 10 (unchanged).
- Annual turnover excluding VAT: €900.000 (instead of €700.000).
- Total balance sheet: €450.000 (instead of €350.000).
For assessing reduced-size groups:
The criteria are also raised. "A company and its subsidiaries, or the companies that together form a consortium, are considered as forming a reduced-size group with its subsidiaries when these companies together, on a consolidated basis, do not exceed more than one of the following criteria":
- Average annual number of workers: 250 (unchanged).
- Annual turnover excluding VAT: €42.500.000 (instead of €34.000.000).
- Total balance sheet: €21.250.000 (instead of €17.000.000).
DELAYED EFFECT
Exceeding these thresholds will have consequences only if the company exceeds these new criteria for two consecutive accounting years.
The consequences of exceeding more than one size criterion manifest normally only if this occurs during two consecutive accounting years. The effects of this exceedance will take effect from the accounting year following the year in which, for the second time, more than one criterion was exceeded or is no longer exceeded.
However, for the purposes of the law, the consistency principle or deferred effect is sidelined once. This would mean that an enterprise that exceeds only one criterion under the new criteria during fiscal year 2024 maximum could be recognised as an SME as early as fiscal year 2025.
ENTRY INTO FORCE AND APPLICATION
The new criteria apply to accounting years starting from 1 January 2024.
If you have any questions regarding this topic, don’t hesitate to contact our RSM Belgium | Tax team ([email protected]).
