Now in Effect – Key Update from 16 July 2025

Section 22 Commences: What It Means for Irish Companies

As of 16 July 2025, Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 has officially come into force, bringing a significant change to Ireland’s audit exemption regime.

This update introduces a more balanced approach, moving away from the previous automatic loss of audit exemption after just one late filing.

Summary of the Changes

Under the new rules:

Companies will only lose audit exemption if they file late twice within a rolling five-year period.
A single late filing will no longer automatically trigger the need for an audit.
Late filing penalties will still apply, but not necessarily the loss of audit exemption unless two late filings occur.

This regime applies to small and micro companies that are not part of a group.

Key Dates and Transition Rules

Any late returns filed up to midnight on 15 July 2025 will continue to follow the previous rule, requiring an audit for the next two financial years.
The five-year audit exemption clock resets from 16 July 2025. Only late filings after this date will count toward the new two-strike rule.

Example 1:

A company with an annual return due on 30 September 2024 files late on 10 July 2025.
Result: The company loses its audit exemption for the next two years under the old rules.

Example 2:

A company files late for the first time on 20 August 2025.
Result: The company retains its audit exemption. If it files late again within the next five years, it will then lose the exemption for two years.

Group Companies: Different Treatment

The revised exemption rules do not apply to companies that are part of a group structure. In those cases:

A single late return may still lead to audit exemption loss for all companies in the group.
The District Court route remains available for seeking an extension to retain audit exemption.

District Court Applications Still Available

If a company (especially one in a group) is at risk of losing audit exemption due to late filing, it may apply to the District Court for an extension.

This remains a valid route to protect audit exemption status.
CRO may object, but final discretion rests with the judge.

Updates to the CORE Filing Portal

The Companies Registration Office (CRO) has issued a notice on the CORE system stating:

“Late annual returns filed up to midnight on 15 July 2025 will require an audit for the following two annual returns. Effective from midnight on 15 July 2025, audited financial statements are required if your company filed late twice in the last five years.”

Companies filing late should also ensure their auditor details are correctly included or updated where applicable.

How NKC Can Help

At NKC Business & Taxation Consultants Ltd, we work closely with companies across Ireland to ensure compliance with filing deadlines and the audit exemption regime.

We can assist you by:

Reviewing your company’s annual return history
Advising on your audit exemption status under the new rules
Assisting with District Court applications where appropriate
Ensuring filings are timely and correctly prepared

If you are unsure how the new rules affect your business, get in touch. Our experienced team is here to support you through every compliance change.

Phone: +353 1 612 0990
Email: enquiries@nkc.ie
Web: www.nkc.ie

New Audit Exemption Rules