Are associations and foundations required to submit an annual corporate tax declaration?

Associations and foundations as non-profit legal entities freely determine the means to achieve their goals. These legal entities are established to carry out non-profit activities, but they may carry out additional economic activity related to the subject of their main activity, using the income to achieve the goals specified in their statute or constitutive act.

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Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)

From the beginning of 2021, the deadline for filing annual tax returns (ATR) for corporate tax (until March 31) has been changed, and the new deadline is now from March 1 to June 30. The same applies to the deadline for payment of corporate tax, which has been changed by 3 months and is now until June 30.

The deadline for paying tax on expenses has also been changed by three months and is now until June 30.

The change in the deadlines optimizes the preparation of the annual tax returns of the companies and improves the process of annual accounting closing. Systematic and predictable consistency in the fulfillment of the obligations for declaring and submitting information to the National Revenue Agency is also achieved. Continue reading “Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)”

Announcement of an annual financial report

What is an annual financial report?

The annual financial report gathers full information about the financial position of the company. It includes a statement for revenues and expenses, a balance sheet, a statement for share capital and a cash flow statement.

The financial report is drawn up for one financial year, coinciding with the calendar year – from January 1st to December 31st. E.g: If you have a company created on 01.12.2020, you need to submit a report on the activity carried out in 2020 – in this case only one month.

Who is obliged to announce an annual financial report?

All the traders according to the Bulgarian Commerce Act – this includes Limited Liability Companies (Ltd.), Limited Partnerships, General Partnerships, Joint-Stock Companies, Limited Partnerships with shares. The non-profit legal entities and the rest enterprises are also obliged. Continue reading “Announcement of an annual financial report”