Annual Accounting Closing in Bulgaria: Deadlines, Tax Returns, Financial Statements & Fines (Complete Guide)
1. Introduction: What is Annual Accounting Closing?
Annual accounting and tax closing is the most critical stage in the financial reporting cycle for every business in Bulgaria. It involves a series of accounting adjustments, inventories, and the preparation of financial statements and tax returns summarizing the company’s activities for the past financial year (which in Bulgaria coincides with the calendar year – January 1st to December 31st).
The closing process requires filing declarations and reports with three primary state authorities:
- National Statistical Institute (NSI): For submitting annual activity statistics.
- National Revenue Agency (NRA): For declaring corporate taxes and paying tax liabilities.
- Commercial Register: For publishing the Annual Financial Statements (GFO) to ensure public transparency.
In recent years, Bulgarian corporate legislation has undergone major updates, making the historical March 31st deadlines obsolete. In 2026, meeting the updated deadlines is critical, as penalties for late filing or omission are substantial. In this guide, we will analyze every step of the annual closing process, the necessary documents, and the fines associated with non-compliance.
2. Step 1: National Statistical Institute (NSI) – Annual Activity Report (GOD)
Before submitting a corporate tax declaration to the NRA, every active Bulgarian company must submit its Annual Activity Report (ГОД) to the National Statistical Institute. This report contains detailed statistical statements (balance sheet, income statement, fixed asset schedules, payroll and employment schedules, etc.).
- Filing Deadline: From March 1st to June 30th of the following calendar year (running parallel to the NRA tax declaration deadline).
- Method of Submission: Submitted electronically through the Single Entry Point (IIS “Business Statistics”), which automatically forwards the required data to the NRA.
- Note: The NSI generates a unique receipt number for the submitted statistics, which must be entered in the Annual Corporate Tax Return (Article 92 declaration). The NRA system will reject tax returns that do not feature a valid NSI receipt number.
3. Step 2: National Revenue Agency (NRA) – Annual Corporate Tax Return (Art. 92 CITA)
All active companies in Bulgaria are required to report their financial result (profit or loss) to the NRA by filing an Annual Corporate Income Tax Return under Article 92 of the CITA.
- Filing Deadline: From March 1st to June 30th of the following calendar year.
- Tax Payment Deadline: The corporate income tax due (10% flat rate on profits) must also be paid to the NRA’s budget account by June 30th. Delayed payments are subject to statutory interest charges.
- Method of Submission: Exclusively online using a Qualified Electronic Signature (QES) through the NRA’s e-services portal.
- Advance Tax Payments: In the Article 92 return, the company declares its advance tax payments for the current year (monthly or quarterly) if its net sales revenue for the year before the preceding year exceeded 153,387.56 EUR.
4. Step 3: Commercial Register – Publishing the Annual Financial Statements (GFO)
Once corporate taxes have been declared, companies must ensure public transparency of their financial results by publishing their Annual Financial Statements (GFO) in the Commercial Register.
- Filing Deadline: By September 30th of the following calendar year.
- Scope of the Report under the Accountancy Act:
- Micro-enterprises: May compile and publish a simplified balance sheet and a simplified income statement, exempt from preparing cash flow or equity statements.
- Small, Medium, and Large Enterprises: Must compile a full set of financial reports, including cash flow statements, equity statements, and explanatory notes.
- Documents Required for Publishing:
- Application Form G2.
- Annual Financial Statements (Balance sheet, income statement, and notes).
- Resolution of the General Meeting of Shareholders (or the sole owner) approving the reports and distributing profits or covering losses.
- Declaration under Article 13, Paragraph 4 of the Commercial Register Act (certifying the authenticity of the documents).
- Proof of paid state filing fee (10.23 EUR for online submission).
5. Accounting Rules for Inactive Companies
Bulgarian corporate law provides administrative exemptions for companies that did not perform any commercial activity (no purchases, sales, agreements, or bank transactions aimed at profit) during the financial year:
- Exemption from CITA Tax Return: Inactive companies do not file an annual tax declaration under Article 92 of the CITA, unless they have corporate tax liabilities from prior periods.
- Exemption from Publishing GFO: In accordance with Article 38, Paragraph 9, Item 2 of the Accountancy Act, inactive companies are exempt from publishing their annual financial statements in the Commercial Register.
- One-time Declaration: The inactive status must be declared by filing a declaration of lack of activity in the Commercial Register once by June 30th of the year following the first inactive year. There is no need to resubmit this declaration in subsequent years unless the company resumes business activities.
6. Penalties and Fines for Non-Compliance
The penalties for missing the annual closing deadlines are among the most severe in Bulgarian tax and corporate law:
- Late Filing of the Article 92 return or Tax Payment (NRA): Proprietary fines for the company range from 255.65 EUR to 1,533.88 EUR. The manager faces personal fines ranging from 102.26 EUR to 511.29 EUR. Fines double for repeated violations.
- Late Publishing of the GFO (Commercial Register): Corporate fines start at 1,022.58 EUR and can reach a percentage of the annual turnover. The manager faces personal fines ranging from 102.26 EUR to 1,022.58 EUR.
- Late Submission of Statistical Reports (NSI): Fines for the company range from 102.26 EUR to 1,022.58 EUR.
7. Quick Reference Table: Annual Closing Deadlines
| Authority | Declaration / Report | Deadline for Active Companies | Deadline for Inactive Companies |
|---|---|---|---|
| NSI | Annual Activity Report (GOD) | By June 30th | Exempt |
| NRA | Article 92 CITA Tax Return | By June 30th (filing and payment) | Exempt |
| Commercial Register | Annual Financial Statements (GFO) / Inactivity Declaration | By September 30th | By June 30th (one-time filing) |
8. Frequently Asked Questions (FAQ)
Q1: When is a company legally classified as “inactive”?
A company is inactive if, during the calendar year, it did not execute any business transactions, receive income, incur operational expenses, pay salaries, or acquire assets. Bank account maintenance fees may sometimes count as activity, so consulting an accountant is highly recommended.
Q2: Is there a difference in deadlines for OOD/EOOD companies and Sole Traders (ET)?
No, in 2026 the deadlines are unified: both company types and sole traders must file their tax returns and pay taxes by June 30th, and publish their financial reports by September 30th.
Q3: Can a company publish its GFO without a certified accountant?
No. The Accountancy Act requires financial statements to be compiled and signed by a qualified “compiler of financial statements” who meets specific education and professional experience criteria. A manager cannot sign the statements as a compiler unless they have the required accounting degree and experience.
Q4: What is the corporate income tax rate in Bulgaria?
The corporate tax rate on corporate profits is 10%. For Sole Traders (ET), the income tax rate is 15%.
Q5: How do I submit corrections to a previously filed return?
If you discover errors after June 30th, you are permitted to submit a corrective tax return under Article 92 once by September 30th of the same year.
Q6: What documents are required to publish the GFO in the Commercial Register?
You need application form G2, the balance sheet, income statement, notes, the shareholders’ resolution approving the report, a declaration of authenticity under Art. 13, and proof of the 10.23 EUR filing fee.
Q7: What are the penalties for failing to file with the NSI?
The fine for the company ranges from 102.26 EUR to 1,022.58 EUR, and the NSI strictly monitors compliance, issuing penalty notices regularly.
Q8: Does a foreign company branch in Bulgaria need to execute an annual closing?
Yes. A branch of a foreign company is treated as a separate taxable entity in Bulgaria and must complete the annual closing, file returns with the NRA and NSI, and publish reports in the Commercial Register.
9. Conclusion
Annual closing is a complex process requiring absolute alignment between the figures reported to the NSI, NRA, and the Commercial Register. Any discrepancies can trigger automated tax audits or result in a rejection of the filing by the Registry Agency.
Our professional accounting team has extensive experience in handling annual closings for local and foreign-owned companies. We prepare your financial statements, file tax returns on time, and handle Commercial Register submissions, ensuring full compliance for your business. Contact us for assistance.