Filing Declarations by Enterprises

Declarations required of enterprises which did not carry out activity within the meaning of the Accountancy Act in 2017, or whose operating income and expenses were below BGN 500.

Under the Supplementary Provisions of the Accountancy Act, enterprises which did not carry out activity during the reporting period are those for which all the following conditions are met:

• during the reporting period they did not enter into transactions under Article 1(1) of the Commerce Act;
• during that period no circumstances arose requiring recognition of revenue under the Accountancy Act and the applicable accounting standards;
• they did not carry out activity involving investment, production and/or sales;
• they did not purchase goods or services for the purpose of earning income and profits.

1. Documents filed with the National Revenue Agency

Enterprises which did not carry out activity within the meaning of the Accountancy Act during the tax period do not file an annual tax return or an annual activity report with the National Revenue Agency, under Article 92(4) of the Corporate Income Tax Act (amended, State Gazette No. 92 of 2017, effective from 1 January 2018).

Article 38 of the Accountancy Act (amended, State Gazette No. 92 of 2017, effective from 1 January 2018) provides that the requirements to file annual financial statements and annual activity reports do not apply to budget-funded enterprises and sole traders not subject to mandatory independent financial audit, or to enterprises which did not carry out activity during the reporting period. The latter circumstance is declared by a declaration published in the Commercial Register by 31 March of the following year. No fee under Article 12(1)(1) of the Commercial Register and Register of Non-Profit Legal Entities Act is due for publishing the declaration.

2. Documents filed with the Registry Agency

Enterprises which did not carry out activity within the meaning of the Accountancy Act during the reporting period file a declaration using the prescribed form (Annex 11) in the Commercial Register at the Registry Agency by 31 March 2018.

3. Documents filed with the National Statistical Institute

Enterprises which did not carry out activity within the meaning of the Accountancy Act in 2017 file a declaration using the prescribed form (Annex 11) with the National Statistical Institute, declaring economic inactivity for 2017, by 30 April 2018. The declaration is submitted through the Institute’s Business Statistics Information System or on paper to the relevant territorial office.

Persons who carried out activity within the meaning of the Accountancy Act during the tax period from 1 January to 31 December 2017, but whose operating income and expenses were below BGN 500 and who therefore cannot complete an annual activity report, submit a declaration (Annex 11) through the National Statistical Institute’s information system. Persons subject to the Personal Income Tax Act may also submit it on paper to the National Revenue Agency together with their annual tax return, by post with acknowledgement of receipt, or at a post office.