The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 has introduced important changes to how small and micro companies in Ireland retain their audit exemption—especially when filing annual returns late. Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 was commenced on 16th July 2025. The new section changes the rules regarding the loss of audit exemption for small and micro companies that are not part of a group.
What’s New in the Audit Exemption Regime?
As of 16 July 2025, small and micro companies that are not part of a group will no longer automatically lose their audit exemption after a single late filing. Instead:
- Only two late filings within five years will trigger the loss of audit exemption.
- The five-year clock resets from 15 July 2025.
- Late filings before this date still result in a two-year audit requirement.
What About Group Companies?
- These new rules do not apply to companies in a small or micro group.
- If any group member files late, the group must apply to the District Court to retain audit exemption.
District Court Applications
- Companies can still apply to the District Court for an extension to retain audit exemption.
- The CRO may object, but the final decision lies with the Judge.
CORE System Update
- The Companies Online Registration Environment (CORE) now reflects the updated rules.
- If audit exemption is lost, companies must provide auditor details when filing.
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