News & Events
If your business is reviewing its audit exemption requirements, it is important to stay informed. New legislative updates introduced through recent legislation, affect how small and micro companies qualify for exemption.
As an accountancy firm offering company secretarial services, we help clients stay on top of these developments. Our goal is to ensure ongoing compliance while minimising administrative pressure.
Audit Exemption Requirements: Why the Changes Matter
Until now, small and micro companies could automatically lose their entitlement to exemption. This would happen if they filed an annual return late. This often created unnecessary costs and administrative burden for directors.
Under the new audit exemption rules, the automatic loss of privilege will no longer apply on the first late filing within five years.
This adjustment provides companies with some breathing space while still encouraging timely compliance. For many businesses, it reduces the risk of unexpected audit costs. It also balances regulatory enforcement with practical business realities.
Understanding the Audit Exemption Criteria
The audit exemption criteria remain central to determining eligibility. Companies must meet specific size conditions. These relate to turnover, balance sheet total, and employee numbers.
If these conditions are satisfied and filings are up to date, the exemption continues to apply. Maintaining accurate financial records is essential to meet the audit exemption requirements. It also helps ensure smooth compliance with CRO regulations.
To learn more, visit CRO.ie.
What Is the Audit Exemption Threshold Requirements?
The audit exemption threshold defines the financial limits that companies must stay within to qualify. To be considered a small company and benefit from audit exemption, a business is required meet at least two of the following conditions.
- Balance sheet total of €7.5 million or less
- Turnover of €15 million or less
- Employee count of 50 or fewer
This applies in both the current and previous financial year, except for companies in their first year. If a company exceeds any of these limits, an audit becomes mandatory. Regularly reviewing financial performance is essential for ongoing compliance with CRO requirements. Maintaining accurate records also plays a key role in meeting these obligations.
New Audit Exemption Rules in Ireland
The new audit exemption rules in 2025 provide small companies with more flexibility on late filings. From the 16th of July, the following applies:
- A company may file one annual return late within a five-year period and keep its audit exemption.
- If there are two late filings in five years, the company will lose its audit exemption for the next two financial years.
- Late filings before the 16th of July 2025 are ignored. Companies begin with a clean slate under the new rules.
This change replaces Section 363 of the Companies Act 2014. It offers small businesses a fairer, more balanced approach to compliance. Instead of immediately penalising companies for a single error, the system now takes a more flexible approach. It recognises that late filings may occasionally occur despite best efforts.
Businesses that maintain consistent compliance will continue to benefit from audit exemption. This ensures they retain the full advantages of the exemption. Repeat offenders, however, may still lose this privilege.
The updated audit exemption requirements provide welcome relief. This is particularly beneficial for directors of small and micro companies in Ireland. By softening the rules on late filing, businesses can focus on growth. They can do this while still maintaining compliance with CRO obligations.
Our company secretarial services team is here to help you navigate these changes. We assist with filings and ensure your company remains compliant with the latest rules. For tailored guidance on audit exemption and wider compliance matters, explore out website today.