Changes to the size classes for capital companies according to the UGB
The classification into the respective size category for capital companies (micro-capital companies (micro), small, medium-sized and large capital companies according to the UGB) depends on the criteria of balance sheet total, revenue and average number of employees. The size category criteria determine which companies are obliged to have their annual financial statements audited, which only have to disclose an abridged annual financial statement to the companies" register court, or also whether there is an obligation to audit consolidated financial statements for large groups. The size category is also relevant for reporting requirements under the CSRD ("non-financial reporting").
Pursuant to a delegated act of the European Commission, the thresholds for total assets and turnover were each raised by 25 % with effect from 1 January 2024. This has now been transposed into the Austrian Commercial Code (UGB) with effect from 20 November 2024 by the UGB Threshold Values Regulation.
The new thresholds for classification into the different size categories are as follows for the 2024 financial year.
| Limited company | Total assets € | Revenue € | Employee |
| Micro | Less than £450,000 | Below £900,000 | 10 |
| Small | up to 6,250,000 | up to 12,500,000 | up to 50 |
| Medium | up to 25,000,000 | up to 50,000,000 | up to 250 |
| Large | 25,000,000 | 50,000,000 | 250 |
The thresholds for the requirement to prepare consolidated financial statements have also been raised by 25 %.
Crucial for classification into a size category is that two of the three criteria have been exceeded or are no longer exceeded on the balance sheet dates of two consecutive financial years. It should be noted that joint-stock companies which are parent companies ("holding companies") must calculate the thresholds for the individual financial statements on the basis of consolidated or aggregated values. For reorganisations and new formations, the legal consequences of the size category take effect on the first balance sheet date following the reorganisation or new formation.
When it comes to final audits, it is important to ascertain whether a mandatory audit will become a voluntary audit at short notice (due to a small GmbH falling within the new thresholds). If the audit is to be carried out, a new agreement must be concluded in any case.
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