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Thresholds defining SME

The Fourth Accounting Directive allows Member States to prescribe lighter reporting regimes for small (Article 11) and medium-sized (Article 27) enterprises. The thresholds for the two categories are periodically updated.

Current thresholds with a new proposed micro category are as follows:

 MicroSmallMedium-sized
Balance sheet total≤ € 500 000≤ € 4 400 000≤ € 17 500 000
Net turnover≤ € 1 000 000≤ € 8 800 000≤ € 35 000 000
Average number of employees during the financial year≤ 10≤ 50≤ 250

The thresholds for small and medium-sized categories were first proposed in 1978 and subsequently updated in 1984, 1990, 1994, 1999, 2003 and 2006 to keep pace with inflation.