The COVID-19 pandemic has severely affected numerous sectors and posed a number of unprecedented challenges to businesses, both from a practical and from a legal standpoint. This entailed the introduction of various measures in order to limit the negative impact on the economy and to protect the trade turnover. Among these measures is the extension of the deadlines for filing annual financial statements of companies, non-profit legal entities and other enterprises, as well as the deadlines for reporting the absence of operations.
In accordance with Article 38, paragraph 1 of the Bulgarian Accountancy Act:
○ all merchants within the meaning of the Bulgarian Commerce Act,
○ all non-profit legal entities, and
○ the rest of the enterprises
file their annual financial statements by June 30 of the following year in the respective register - Commercial Register, Register of Non-Profit Legal Entities, and via an economic publication or the Internet.
Deadline for filing annual financial statements in 2020: extended until 30 September 2020 (in accordance with §33 of the State of Emergency Measures Act);
Penalties for non-compliance: a fine ranging from BGN 200 to BGN 3000 and imposition of a pecuniary penalty on the enterprise ranging from 0.1 to 0.5 per cent of the net sales revenue for the reporting, period for which the unpublished financial statements refer, but not less than BGN 200.
In accordance with Article 38, paragraph 9, item 2 of the Bulgarian Accountancy Act, enterprises (all merchants within the meaning of the Commerce Act, non-profit legal entities and the rest of the enterprises), which did not perform business in the reporting period, state this circumstance once only - for the first reporting period, in which no business was performed. This is realised with a declaration in the respective register - Commercial Register, Register of Non-Profit Legal Entities, and via an economic publication or the Internet by 31 March of the following year.
Deadline for filing a declaration to report the absence of operations in 2020: extended until 30 June 2020 (in accordance with § 33 of the State of Emergency Measures Act )
Penalties for non-compliance: a fine ranging from BGN 200 to BGN 1000, and imposition of a pecuniary penalty on the enterprise ranging from BGN 300 to BGN 2000
Pursuant to an amendment (Art. 62a, para. 2, item 2, entry into force 14 March 2020) in Ordinance No 1 of 14.02.2007 on the keeping, storing and access to the Commercial Register and the Register of Non-profit Legal Entities,
○ micro-enterprises and
○ small and medium-sized enterprises
do not file AGM minutes for the approval and acceptance of annual financial statements. Instead the approval is expressed by means of a declaration, signed by the legal representative of the respective enterprise or non-profit legal entity. This change aims to facilitate businesses by relieving them from documentary requirements and formalities.
The deadline for filing said declaration coincides with the one for filing annual financial statements - until June 30 of the following year. In 2020, it has been extended to 30 September 2020.
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