If you’re doing business in the Netherlands, it’s essential to understand your legal responsibilities regarding financial reporting. Almost all Dutch corporate entities are required to prepare annual financial statements. In certain cases, these statements must also be audited—depending on factors such as company size, revenue, assets, and group structure.
At Nexia DHW, our specialists provide practical insights into the key rules, exceptions, and deadlines that apply to financial reporting and audit obligations. In this article, we highlight essential topics including:
- Is preparing financial statements sufficient, or does your company require an audit?
- Dutch GAAP vs IFRS – which standards apply?
- When consolidation is required (and when it is not)
- Filing timelines and statutory deadlines
- Voluntary audits and their benefits
Understanding Your Audit Obligations
Annual financial statements are a fundamental tool for assessing a company’s financial health and typically form the basis for preparing the corporate tax return. Whether an audit is required depends on the size classification of your business.
Company Size Criteria (Effective 2024)
Entities are classified based on three criteria:
- Total assets
- Net turnover
- Average number of employees
A company is assigned to a size category—micro, small, medium, or large—if it meets two out of the three criteria for two consecutive years (or immediately in the first year for new entities).
- Medium-sized and large companies: Statutory audit required
- Micro and small companies: Typically exempt from audit requirements
Choosing the Right Financial Reporting Framework
Companies in the Netherlands can prepare their financial statements under various frameworks:
- Reporting based on tax principles (for micro and small entities)
- Dutch GAAP (Title 9, Book 2 of the Dutch Civil Code)
- IFRS-EU (mandatory for listed companies)
- Dutch GAAP with selected IFRS-EU standards for specific topics
Dutch GAAP is flexible and well-suited to SMEs, while IFRS is globally recognized and preferred by multinational companies or those planning international expansion.
Auditors must adhere to strict ethical standards under the ViO (Verordening inzake de onafhankelijkheid), ensuring the objectivity and integrity of audit services in the Netherlands.
Our specialists at Nexia DHW can help you determine the most appropriate reporting standard for your business needs.
Consolidated Financial Statements: When Are They Required?
If your company heads a group of affiliated entities, consolidated financial statements may be required. According to the Dutch Civil Code, a “group” is defined as an economic unit where legal entities and companies are organizationally affiliated.
There are legal exemptions from consolidation designed to reduce the administrative burden for smaller businesses. Our team can assess whether these apply to your specific group structure.
Voluntary Audits: Strategic Value Beyond Compliance
Even if your company is not legally required to undergo an audit, a voluntary audit can provide considerable advantages. It may be requested by stakeholders, parent companies, or potential investors, and can help to:
- Enhance financial credibility
- Improve access to financing
- Support strategic decision-making
- Strengthen internal controls and risk management
Our Audit Services team delivers efficient, high-quality audits that add value—whether mandatory or voluntary. Backed by extensive experience and industry expertise, we help ensure that your audit supports both compliance and strategic growth.
More Than Just Audit Support
Nexia DHW also offers in-house expertise in related areas, including:
- Accounting services
- Tax compliance
- Corporate finance
- Legal advisory
Contact Us
Having a trusted advisor makes all the difference. If you have questions about your company’s financial reporting requirements in the Netherlands —or would like to explore how we can support your business? Feel free to contact one of our specialists at info@nexiadhw.nl. They will be happy to explain our services to you.
Note: Legislation is subject to change. We recommend speaking with your Nexia DHW advisor to ensure you are up to date with current requirements.
