EXEMPTION RULES

48) Can the Union subsidiaries subject to Article 40a of the Accounting Directive benefit from the exemption regime under Article 19a(9) and 29(8) of the Accounting Directive? The sustainability statement prepared in accordance with Articles 19a/29a of the Accounting Directive and the sustainability report prepared in accordance with Article 40a of the Accounting Directive have a different content and operate under separate regimes. Therefore, a Union subsidiary publishing a sustainability report at the group level of its third-country parent company according to the provisions of Article 40a does not exempt the Union subsidiary itself nor its own subsidiaries from complying with the reporting obligations of Articles 19a and/or 29a. However, a third-country parent undertaking falling under the scope of Article 40a may choose to publish a consolidated sustainability statement under Article 29a (prepared in accordance with the sustainability reporting standards adopted under Article 29b or in a manner equivalent to those sustainability reporting standards), instead of having its EU subsidiary or EU branch publish a sustainability report at the group level under Article 40a. In this case, the EU subsidiary is exempted from publishing the sustainability report under Article 40a, provided that the conditions set out in Articles 19a(9) and 29a(8) are met.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07