You’ll be thankful to have BG Company manage your accounting as Bulgaria rewards transparent accounting and employs a rigorous system to keep companies in check when they present their financial status.
Our accounting service covers management and control of your company’s finances, a fast response time, full compliance with the statutory deadlines, correct and in-time submission of reports to the revenue authority and exact payment of the taxes due.
BG Company Ltd renders accounting services to clients who incorporate a new company or acquire a ready-made one. We have established a competent in-house accounting department to see your finances are in order. Our accountants are extremely well-qualified and experienced, based on their practice with different types of business and a number of successfully resolved cases. Focusing on our foreign clients, operating exclusively in an international environment, we are specialised in the trans-border operations and international tax issues.
What makes our accounting offer stand out is that you pay only for what you use. You are only charged an amount based on the number of processed documents each month – NO additional fees for VAT handling, annual closing of accounts, preparation annual tax return and annual financial reports – all is included in our document-processing fee. Dormant companies and such with less than 10 documents per month pay only the minimum accounting fee.
If your company is VAT registered but it is not actively trading, we can assist you with the monthly VAT declaration for only 40 EUR monthly or 400 EUR if prepaid for 12 months’ service.
Issuance of bilingual invoices, invoice notices and protocols with an accounting software in compliance with the VAT Act
Processing the income invoices, expense invoices, payment orders and other documents
Preparation of the monthly VAT returns and filing them with the NRA, including nil returns for the months when the company had no documents to process
Preparation of the annual financial statements and annual tax return and filing them with the NRA
Compilation, registration and termination of the concluded employment and freelance contracts
Preparation of payrolls, salary slips and recapitulation
Preparation of payrolls, salary slips and recapitulation
Your financial year commences on January 1st and ends on December 31st. Companies that have commenced their business after January 1st report their operations as of their establishment until December 31st.
VAT returns have to be submitted on a monthly basis up to the 14th day of the month for the incomes and expenses during the preceding month. The VAT payable, if applicable, is to be paid within the same period.
The annual financial statements and annual tax return for the preceding financial year are to be prepared and filed with the NRA (National Revenue Agency) until March 31st at the latest. Corporate taxes due also have to be paid within the same period.
Afterwards, your annual financial statements is to be published by June 30th at the latest in the Commercial register under the company’s file as to be visible for public inspection.
Any person who is the owner and manager can be insured as a self-insured person on a minimum insurable income of BGN 710,00 in 2022 up to a maximum insurable income of BGN 3400,00. The amount of social security contributions for SSS, SM, and SMPS per month is 27.8% of the selected insurance income. In this case, the person does not receive a salary and, accordingly, the insurances are not recognised as the company’s expense.
When a person chooses to be insured through a labour contract, each occupation and position in a different economic activity has a minimum salary threshold. In this case, the gross salary is deducted at the expense of the worker, then the DOD is deducted from the salary, and the rest is transferred to the employee. At the same time, insurances at the expense of the employer are also due. Salary in Bulgaria can be paid in cash every month as the worker signs up on a salary payroll and a payslip that states that he has received his salary in cash. When the salary is transferred via bank, a signature is not required as it is visible from the bank account statement.
It must be kept in mind that the maximum insurable income is BGN 3400,00, which means that in the case of a salary over this amount, the insurances are due to BGN 3400,00, and only income tax is due on the whole amount.
Appointment and termination of employment
The number and the date of conclusion of the contract, the gross salary, the occupation, and the economic activity of the company are announced to the NRA. The starting date must be at least one day before the start date. Nothing can be done retrospectively in the labour contracts. The labour relations are terminated at most seven days afterwards.
All contributions are due by the 25th of the following month.
After the end of the calendar year, by June 30th of the following year, an annual tax return, an annual financial statement for statistics, and profit tax of 10% must be paid. It is offset by the realized profit, and the remaining amount can be distributed as a dividend to the owner by paying 5% of the distributed amount. The rest is transferred to the owner’s personal bank account. If revenue is EUR 90,000 per year and no costs, tax will be 10%, EUR 9,000, due until June 30th of the following year. After tax deduction, the remaining amount of EUR 81,000 may be distributed as a dividend at a desired time and a 5% dividend tax, EUR 4050, must be paid. If the company has costs, they are deducted from the revenue, and then the corresponding taxes are charged – 10% profit tax and 5% dividend tax.
After submitting an annual tax return to the NRA and an annual report to the NSI by June 30th of the following year, the annual financial statement is published in the Commercial Register by September 30th.
Companies that have no activity during the calendar year do not submit an annual tax return to the NRA but submit a declaration of inactivity to the NSI and the Commercial Register by June 30th of the following year.
“COMPANY in BULGARIA” is the one-stop-shop for setting up a business in Bulgaria. We guide you through the entire process of setting up a company in Bulgaria.
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