Bulgaria changes calculation method of penalties for not publishing financial statements

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bulgaria changes calculation method of penalties for not publishing financial statements

The publication of annual financial statements (AFS) in the trade register is often neglected by Bulgarian trading enterprises.

varbanov.jpg

Petar Varbanov

This is partly due to the lack of effective penalties imposed by authorities over the years. However, the latest changes affecting the publication of financial statements aims to remedy this situation.

Effectively, all companies are required to submit their AFS to the trade register by June 30 of the year following the reporting year. Until recently, the deadline for joint-stock companies' reports was July 31, which means the audits of their financial statements required an earlier completion this year.

Small enterprises, which are not subject to statutory independent financial audits, are not required to publish their income statements and management reports. However, they still need to publish their financial statements, but have the right to not disclose all content.

The most substantial legislation change is the method of calculating the penalty for not publishing financial statements. Rather than a fixed penalty, enterprises are now penalised with a pecuniary sanction ranging from 0.1% to 0.5% of the net sales revenue for the reporting period. This may result in excessive fines if the company's net sales revenue is high. For companies with low net sales, the change may be positive as the penalty imposed might decrease compared to previous years.

An important point to note is that, in addition to the penalty imposed on the company, the individual who fails to publish the financial statements (typically the company's director) will be fined with a penalty ranging between €100 ($112) and €1,500. In the event of repeat violations, the fine or pecuniary sanction will be doubled.

Branches of foreign companies

Branches of foreign entities are obliged to publish the audited financial statements of the parent company in the trade register.

There is no specific deadline for this publication because the statements of the parent company are subject to rules that are outside the control of Bulgarian legislation. It is, nevertheless, recommended that publication is organised as early as possible after the statements of the parent company are duly adopted, approved and published in the country of establishment.

Petar Varbanov (petar.varbanov@eurofast.eu)

Eurofast Bulgaria Office

Direct tel: +359 2 988 69 75

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Wim Wuyts, who had been head of the specialist tax network since 2017, is moving on to a new role with WTS’s Belgian member firm
MNEs are increasingly using algorithmic tools in TP. Sahasranshu Dash argues that data ethics should therefore plug directly into the TP design process
The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Rafael Tena tells ITR about the ‘crazy’ Mexican market, ditching the hourly rate, and refusing to grow his fledgling firm in an ‘unstructured way’
It should be easy for advisers to be transparent about costs, Brown Rudnick partner Matthew Sharp said in response to exclusive ITR in-house data
The sprawling legislation phases out Joe Biden-era green tax incentives for businesses; in other news, the UK will reportedly maintain its DST despite US pressure
Gift this article