- for companies
For companies, the statutory annual accounts form the basis for assessing the size criteria.
The size of parent companies is calculated on a consolidated basis.
(See Accounting Standards Commission Opinion 2018/22.) This does not apply to affiliated companies (unless they themselves are parent companies). See also “Group of limited size”.
The threshold values are as follows:
| Financial period starting | before 01/01/2024 | from 01/01/2024 |
|---|---|---|
| Headcount | 50 FTE | 50 FTE |
| Annual turnover (excluding VAT) | 9.000.000 euro | 11.250.000 euro |
| Balance sheet total | 4.500.000 euro | 6.000.000 euro |
Large company - full model
A company is considered large if it exceeds two or all three of the thresholds or if it is listed on a stock exchange.
Large companies should use the full model.
Small company - abridged model
A company is considered small if it exceeds no more than one of the threshold values mentioned above (Art. 1:24 CCA).
Small (unlisted) companies may use the abridged model.
Micro company - micro model
Micro companies are a subset of small companies. The rules for small companies also apply to micro companies.
A micro company is a small company that exceeds no more than one of the following threshold values (Art 1:25 CCA):
| Financial period starting | before 01/01/2024 | from 01/01/2024 |
|---|---|---|
| Headcount | 10 FTE | 10 FTE |
| Annual turnover (excluding VAT) | 700.000 euro | 900.000 euro |
| Balance sheet total | 350.000 euro | 450.000 euro |
Micro companies may use the micro model.
A micro company must not be a parent or subsidiary at the closing date of its financial year.
FAQ – Size criteria for companies
Why is a company with more than 100 employees not always considered large?
For annual accounts for financial years starting as from 1 January 2016, the size of the workforce is no longer a decisive factor. A company is considered small if it exceeds no more than one of the threshold values. (Art.1:24 §1 CCA)
How is a company’s headcount calculated?
Average headcount is the average number of employees expressed as full-time equivalents (FTE) registered in the DIMONA database at the end of each month of the financial year.
How is (annual) turnover calculated?
Turnover is the amount generated by the sale of goods and the provision of services to third parties in the ordinary course of business less authorised discounts (reductions, rebates, etc.), VAT and any other tax related to turnover (Art. 3:90 of the Royal Decree of 29 April 2019 implementing the Code of Companies and Associations).
- Derogation: When more than 50% of a company’s revenue does not meet the above mentioned description, turnover is total operating and financial revenue excluding non-recurring revenue.
For more information, see CBN/CNC Opinion 2022/03, Section IV (Turnover), Part B (Derogation). - If the company’s financial year runs for more or less than 12 months:
see CBN/CNC Opinion 2022/03, Section IV (Turnover), Part C (Duration of the financial year).
Which model should start-ups choose?
For purposes of the size criteria, figures are estimated in good faith at the beginning of the financial year. If the estimates reveal that more than one of the threshold values will be exceeded during the first financial year, this fact must be taken into account immediately for the first financial year.
What happens if the threshold values are (no longer) exceeded?
Exceeding or no longer exceeding the threshold values will only have consequences if this occurs for two consecutive financial years. This is known as the consistency principle.
More info: CBN/CNC Opinion 2022/3.
How is the size of parent companies calculated?
The size of parent companies is calculated on a consolidated or aggregated basis (Art 1:24 §6 CCA).
More info: CBN/CNC Opinion 2022/03, V.B.2.