Increase in the monetary thresholds for the company size categories

In its press release on 22 December 2023, the Federal Ministry of Justice drew attention to the drafting aid on amendments to the German Commercial Code and the Introductory Act to the German Commercial Code published on the same day. The planned amendments serve to increase the monetary thresholds ("balance sheet total" and "revenue") in Sections 267, 267a and 293 HGB for determining the size categories of companies and groups by around 25% in each case.

The increase in thresholds implements Commission Delegated Directive 2023/2775 of 17 October 2023 amending Directive 2013/34/EU of the European Parliament and of the Council as regards the adjustment the size criteria for micro, small, medium-sized and large undertakings or groups, which was published on 21 December 2023. According to the planned legislative amendments as well as the European regulations, the new thresholds are mandatory for financial years beginning on or after 1 January 2024.

The option granted by the EU Commission, according to which member states may allow a voluntary increase in thresholds for the 2023 financial year, is to be implemented in the HGB. This gives companies the option of applying the higher thresholds retrospectively to (consolidated) financial statements and (group) management reports that begin after 31 December 2022 (e.g. for the calendar-based financial year 2023).

The press release of the Federal Ministry of Justice can be found here. The drafting aid for an amendment to the draft law on the introduction of a leading decision procedure at the Federal Court of Justice can be found here.