Spin-off Demergers – Tax Aspects
October 29, 2024Legislative Decree no. 125 of 6 September 2024 has increased the size thresholds for the preparation of abbreviated and micro financial statements (thus amending Articles 2435-bis and 2435-ter of the Italian Civil Code).
As a result of the amendments made by Article 16, paragraph 1, letter a) of Legislative Decree 125/2024 to Article 2435-bis, paragraph 1 of the Civil Code, companies that have not issued securities traded on regulated markets (i.e., unlisted companies) may prepare abbreviated financial statements when, in the first year or subsequently for two consecutive years, they do not exceed two of the following limits:
- total assets on the balance sheet: €5,500,000 (previously €4,400,000)
- net revenues from sales and services: €11,000,000 (previously €8,800,000)
- average number of employees during the year: 50 (unchanged)
It remains the case that, pursuant to Article 2435-bis, paragraph 8 of the Civil Code, companies preparing abbreviated financial statements must switch to ordinary financial statements when, for the second consecutive year, they exceed two of the thresholds listed above.
As a result of the amendments made by Article 16, paragraph 1, letter b) of Legislative Decree 125/2024 to Article 2435-ter, paragraph 1 of the Civil Code, companies that have not issued securities traded on regulated markets and are eligible to prepare abbreviated financial statements are considered micro enterprises (which are subject to a specific simplified financial reporting regime) when, in the first year or subsequently for two consecutive years, they do not exceed two of the following limits:
- total assets on the balance sheet: €220,000 (previously €175,000)
- net revenues from sales and services: €440,000 (previously €350,000)
- average number of employees during the year: 5 (unchanged)
It remains the case that, pursuant to Article 2435-ter, paragraph 4 of the Civil Code, companies benefiting from the simplifications provided therein must prepare their financial statements either in abbreviated or ordinary form, depending on the circumstances, when, for the second consecutive year, they exceed two of the thresholds listed above.
SUMMARY TABLE
Micro:
- total assets on the balance sheet: €220,000 (previously €175,000)
- net revenues from sales and services: €440,000 (previously €350,000)
- average number of employees during the year: 5 (unchanged)
Abbreviated:
- total assets on the balance sheet: €5,500,000 (previously €4,400,000)
- net revenues from sales and services: €11,000,000 (previously €8,800,000)
- average number of employees during the year: 50 (unchanged)
16 December 2024
CR
