Simplification · TAX-01

Eligible to use a more flexible opt-in Taxonomy disclosure regime instead of full Article 8 Taxonomy Regulation reporting

Addressee Large undertakings (over 1000 employees) with net turnover not exceeding EUR 450 000 000Act COM(2025) 81, 2025/0045 (COD)Article Art. 2(3) and 2(5), inserting Art. 19b(1) and Art. 29aa(1) of Directive 2013/34/EUClass Businesses

What changes

Large undertakings with turnover not exceeding EUR 450 000 000 gain an opt-in, lighter Taxonomy disclosure track instead of full Article 8 reporting.

Prior rule vs new rule

Prior rule

Trigger

Any undertaking subject to Art. 19a or 29a of Directive 2013/34/EU non-financial reporting, regardless of size or turnover

Obligation

Full mandatory Article 8 Taxonomy Regulation disclosure applied to every undertaking in scope of Art. 19a/29a — no turnover-based opt-in or flexibility existed.

New rule

Trigger

Net turnover not exceeding EUR 450 000 000 during the financial year (or on a consolidated basis for parent undertakings)

Obligation

Eligible to use a more flexible opt-in Taxonomy disclosure regime instead of full Article 8 Taxonomy Regulation reporting

Who is affected

Addressee

Large undertakings (over 1000 employees) with net turnover not exceeding EUR 450 000 000

Class

Businesses

Sectors

No sector named — applies by size or activity

Applies

Once transposed by Member States (transposition due within 12 months of this Directive's entry into force)

Burden drivers

No burden drivers recorded on this provision.

Needs both over 1000 employees and turnover at or below EUR 450m; above that turnover you remain on the full mandatory Article 8 route.

Source text

Verbatim

Member States shall ensure that, by way of derogation from Article 8 of Regulation (EU) 2020/852, undertakings as referred to in Article 19a(1) of this Directive which, on their balance sheet dates, do not exceed a net turnover of EUR 450 000 000 during the financial year shall apply the paragraphs 2, 3 and 4 of this Directive.

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