This is to kindly remind you that as per the Accounting Act the deadline for submission of an application for announcing the annual financial statements (“AFS”) and annual managment report for 2016 with the Commercial Register is the 30th of June 2017.
Until 31 July of the current year, the Registry Agency submits to the National Revenue Agency (“NRA”) an electronic list of the companies which have failed to publish their AFS for the previous year within 30th of June. The list must contain the name of the enterprise and BULSTAT code. Until 30th of September of the current year, the NRA takes the due measures for performance of audit and ascertainment of violations regarding publishing of AFS.
As of 2016 the fines and pecuniary sanctions are significantly increased. A person who has the obligation and does not publish financial statement is penalized by a fine ranging from BGN 200 to 3000 and the undertaking is subject to a pecuniary sanction ranging from 0.1 to 0.5 % of the net income from sales for the reporting period to which the unpublished financial statement pertains but not less than BGN 200. For a repeated violation/ recurrent violation, a fine or a double pecuniary sanction is to be imposed.
The amendments to the Commercial Act, promulgated in SG. 105/2016, introduce new presumptions of insolvency. According to one of them, it is assumed insolvency of a trader who has not submitted for announcement in the Commercial Register AFS for the last three years before filing the application for opening insolvency proceedings.
The AFS for all undertakings contains at least: accounting balance, report on incomes and expenses and an annex. (The form, structure and content of the full set of the financial statement are determined by the applicable accounting standards.)The AFS of the sole proprietors having net income from sales for the current reporting period up to BGN 200 000 and is not subject to mandatory independent financial audit, may include only report on incomes and expenses.
The AFS of micro undertakings may consist only of shortened balance and shortened report on incomes and expenses by sections. This regulation does not apply to investment companies and financial holding companies included in the category for micro undertakings micro undertakings. The AFS of the small undertakings may consist only of shortened balance, shortened report on incomes and expenses by sections and groups, and annex.
The AFS of the medium – sized and large undertakings, as well as of the public-interest entities are compiled in full set in accordance with the applicable accounting standards.
Large undertakings and public-interest entities in the explanatory annexes announce the sums calculated for the year for the services provided by the registered auditors, separately for:
• Independent financial audit
• Tax consultations
• Other services not related to the audit.
The information mentioned above is provided in a similar manner with regard to the undertakings included in the consolidation in the explanatory annexes of the consolidated financial statement.
The AFS of joint stock companies, partnerships limited by shares and limited liability companies shall be accompanied by the proposal of the managing body on the distribution of profit or for covering a previous year’s loss and the decision of the general meeting of shareholders/partners on the allocation of profit for distribution or for covering a previous year’s loss. The AFS of an enterprise which prepares consolidated financial statements shall be published simultaneously with the consolidated financial statements of the group, together with their respective annual management reports.
Please note, that based on the Commercial Register’s practice the submission of an AFS without all of its constituents may result in rejection of the entry and respectfully in the imposition of fines as specified below.
We recommend the campaign of submission of the AFS to begin as soon as possible to avoid last-minute submissions, with non-operating Commercial Register system, leading to failure to observe deadlines and further fines.
In case you would like to use our services with regards to the announcement of AFS of the companies you represent, please do not hesitate to contact us.