Extension of the disclosure deadline for 2022 financial statements
The Federal Office of Justice, in cooperation with the Federal Ministry of Justice, has made a significant decision that will affect companies with a fiscal year-end of December 31, 2022. The disclosure deadline for the relevant annual financial statements has been extended to account for ongoing challenges, particularly in the context of the COVID-19 pandemic.
Obligations of Companies and Commercial Entities
The preparation of annual financial statements is one of the fundamental obligations of companies and commercial entities, particularly for corporations. Electronic disclosure of financial statements—that is, their publication or filing—is mandatory for certain companies, primarily corporations.
Relevant Deadlines and Consequences of Non-Compliance
Accounting documents for fiscal years beginning on or after December 31, 2021, must be submitted electronically to the competent authority, while for fiscal years prior to January 1, 2022, electronic submission to the operator of the Federal Gazette is required. Failure to do so in a timely or complete manner may result in administrative fine proceedings by the Federal Office of Justice. In the event of violations of content or form requirements in the published annual financial statements, the Federal Office of Justice will consider initiating administrative fine proceedings. Unpaid administrative fines, penalties, and procedural costs will be enforced.
Decision of the Federal Office of Justice
With regard to the fiscal year ending December 31, 2022, the Federal Office of Justice informs that no administrative fine proceedings pursuant to Section 335 of the German Commercial Code (HGB) will be initiated before April 2,2024, no administrative fine proceedings pursuant to Section 335 of the German Commercial Code (HGB) will be initiated against companies whose statutory deadline for disclosing financial statements expires on December 31, 2023. This measure is intended to appropriately address the concerns of the parties involved in light of the ongoing effects of the COVID-19 pandemic.
Impact and Background
The extension of the disclosure deadline for annual financial statements with a balance sheet date of December 31, 2022, is a response to the ongoing challenges companies face due to the continuing exceptional circumstances of the COVID-19 pandemic. It provides affected companies with additional time to fulfill their legal obligations and contributes to the creation of appropriate framework conditions for financial reporting.
Professional advice
Professional advice from a tax advisor not only enables companies to comply with legal requirements but also to optimize and streamline their accounting processes, ultimately resulting in well-founded and reliable annual financial statements.
Our team of tax advisors in Düsseldorf and Oberhausen is here to assist you. We recommend scheduling an appointment at one of our offices today. We’re here for you!
