Accounting topics

Accounting in Bulgaria

Accounting in Bulgaria fully meets all International Accounting Standards. As such, we would undertake the following:

  • Submission of monthly VAT/VIES returns.
  • Monthly processing of income and expense invoices and bank statements.
  • Issue bilingual income invoices in Bulgarian and English.
  • Annual closing of accounts, completing and submitting an annual tax return and annual financial statement with the National Revenue Agency and the Commercial Register.
  • Submit annual statistics reports on the company's activities with the National Statistical Institute.
  • Representation before the National Revenue Agency in case of inspections and audits.
  • Assistance regarding money orders for tax liabilities.
  • Preparing quarterly trial balances.

The above services fully comply with the accounting legislation requirements and are mandatory for all companies.

Audit is required

Audit is required for all Bulgarian joint stock companies. The same does not apply to Bulgarian Limited Liability companies, which are subject to audit merely in case two of the below three criteria have been met:

  • Amount of assets - at least 1,5 million BGN.
  • Net amount of income - at least 2,5 million BGN.
  • Personnel - at least 50 employees.

Corporate income tax

Flat rate of 10 % from all the company's profits.

Payroll

We would provide you with all necessary payroll accounting for all of your employees and maintain individual payroll data. This would include without limitation:

  • Preparation of reports to the local authorities as required by local law and all reporting related to pensions.
  • Act as point of contact with authorities and represent the Company in front of the authorities.
  • Prepare data and statistical reports according to current law.
  • Produce payroll calculations for input into the Company's accounts (including calculation of the employees basic salary, sick pay, maternity pay, holidays without pay, etc., and the calculation of the employers contributions on behalf of the employee as required by local law).
  • Calculate the tax to be paid (as applicable depending on local law) on "benefits in kind" (as calculated by the accountants, including pension, health care contributions, etc.
  • Maintain full records of all staff on the payroll.
  • Maintain records of all temporary staff.
  • Ensure that records are kept up to date for all staff joining the payroll and leaving the payroll.
  • Administer the process of staff joining/leaving the payroll, ensuring that all local legal requirements are adhered to.
  • Ensure that records are stored securely and kept for at least the mandatory period (as imposed by local law).
  • Prepare documents for joining and leaving of employees.
  • Summarise work hours using attendance registers or similar documents.
  • Record holidays and permissions for holidays.
  • Record sickness absences.
  • Ensure that Company is kept up to date with changes in employment laws, including industrial hygiene, computer working directives, etc.
  • Prepare data reports to local authorities on sick leave, pension contributions, etc.
  • Produce compulsory information to be given to employees, including changes to personal taxes, changes to benefit in kind information, etc.
  • Record employees with all the required authorities.