April 15, 2016

The Dutch Civil Code (“DCC”) has been amended in respect of the size criteria of companies. An additional qualification was added by means of article 2: 395a DCC : the micro-sized company. The criteria for such company are as follows:

- asset value of less than € 350,000 (based on historical cost);
- net turnover of les than €700,000;
- number of employees less than 10.

Companies qualifying as micro-sized can limit their balance sheet to the following items:
- fixed assets;
- current assets;
- liabilities;
- equity;
- provisions.

The profit and loss account can be limited to the following items:
- net turnover;
- other income;
- raw material and supplies;
- personnel expenses;
- other losses on fixed assets;
- other operating expenses;
- taxes;
- net result.

As annual accounts, BV’s will not have to prepare more than a balance sheet and profit and loss account. At the trade register solely the balance sheet should be filed.
The new regulation is effective as from 1 January 2016, though the criteria can be applied to the annual accounts of the financial year 2015.