Extension of deadlines for announcement of annual financial statements and declarations for inactivity

24.03.2020

The Measures and Actions During a State of Emergency Act (the “State of Emergency Act”), re-enacted and promulgated on 24.03.2020, extends the deadlines set forth in the Accountancy Act for the publication of annual financial statements and declarations for inactivity, due for 2020.

I. Extension of the deadlines for announcement of annual financial statements:

The deadline for publication of annual financial statements (“AFS”) with the Commercial Register has been extended to September 30, 2020. A 3-month extension has been granted as, until now, the enterprises and the non-profit legal entities have had to announce the AFS by 30 June 2020.

A significant change has been introduced with regards to the preparation of the AFS for 2019 financial year. According to the State of Emergency Act, the signatures under Art. 25, para. 2 and 4 of the Accountancy Act (those of the directors of the enterprises, the compilers of the financial statements or of the persons who performed the independent financial audit) may be replaced by electronic signatures.

Where the financial statements are subject to an independent financial audit and if all signatures on the AFS and the audit report are electronic, the seal of the registered auditor will no longer be required. In this case, only the registration number of the respective auditor shall be entered in the AFS and the audit report.

II. Extension of the deadlines for announcement of declarations for inactivity:

According to Art. 38, para. 9, item 2 of the Accountancy Act, all enterprises that have not carried out business activity in the previous reporting year (01.01.2019 – 31.12.2019) should declare this circumstance before that Commercial Register. The enterprises should file a declaration in the form approved by an order of the Minister of Finance. So far, the deadline for filing of such declarations for inactivity was 31 March this year.

However, as per § 33 of the Transitional and Final Provisions of the State of Emergency Act, the deadline for filing declarations for lack of activity has been extended to 30 June 2020.

For more information, please contact:

Dimitar Grozdanov, Senior Associate
dimitar.grozdanov@tbk.bg

Mirela Hristova, Associate
mirela.hristova@tbk.bg