Annual Financial Report (AFR) in Bulgaria

What Are Annual Financial Statements?

Annual Financial Statements (Годишен финансов отчет / ГФО) are a mandatory document reflecting the financial position and results of a company's operations for a calendar year. Every commercial entity entered in the Trade Register (Търговски регистър) is required to prepare and publish annual financial statements each year — this is a legal requirement under the Accounting Act and the Commerce Act.

What Do Annual Financial Statements Include?

The annual financial statements of most small and micro enterprises consist of:

• Balance sheet (Statement of Financial Position) — shows assets, liabilities, and equity
• Income statement (Statement of Profit or Loss) — revenues, expenses, and the financial result for the year
• Notes — explanatory notes and supplementary information

For larger enterprises, additional reports are prepared:

• Cash flow statement
• Statement of changes in equity
• Auditor's report (for mandatory audits)

Why Are They Important?

Publishing annual financial statements is not just a formality — it ensures transparency for partners, creditors, and government institutions. Failure to publish leads to serious fines and can complicate dealings with banks and counterparties.

Who Must File?

The obligation to prepare and publish annual financial statements covers a wide range of persons and enterprises.

Obligated Entities

• All commercial companies (EOOD, OOD, AD, EAD, KD, SD), including those that did not conduct activity during the year
• Sole traders (ET) subject to mandatory financial audit
• Branches of foreign legal entities
• Non-profit legal entities (associations, foundations) that conduct economic activity

Special Regime for Inactive Enterprises

Enterprises that did not conduct activity during the reporting period file a special inactivity declaration (under Art. 38(9)(2) of the Accounting Act) instead of full financial statements. The declaration is filed with the Trade Register and is free — no state fee is owed.

Exceptions

• Sole traders (ET) not subject to mandatory audit are not required to publish annual financial statements in the Trade Register (but they do file an annual tax return with the NRA)
• Budget entities follow a separate reporting regime

Deadlines

Meeting the deadlines for filing and publishing annual financial statements is critically important — late filing leads to penalties.

Annual Tax Return at the NRA

Deadline: June 30 of the year following the reporting year

The annual tax return under the Corporate Income Tax Act (ЗКПО) or the Personal Income Tax Act (ЗДДФЛ, for sole traders) is filed electronically with the NRA. The annual financial statements are attached. The tax due, minus advance payments, must also be paid by June 30.

Publishing Annual Financial Statements in the Trade Register

Deadline: June 30 of the year following the reporting year (for most enterprises)

Publication is done by filing application G2 with the Trade Register at the Registry Agency. For example, financial statements for 2025 are published by June 30, 2026.

Inactivity Declaration

Deadline: June 30 of the year following the reporting year

Also filed via application G2 with the Trade Register, but without financial statements — only a declaration that the enterprise did not conduct activity.

Procedure

Publishing annual financial statements follows several clear steps — from preparing the reports to filing with the Trade Register.

Step 1: Prepare the Annual Financial Statements

Work with your accountant or accounting firm to prepare the balance sheet, income statement, and notes. For micro enterprises (most newly registered EOODs), the forms are abbreviated and simplified.

Step 2: Approve the Annual Financial Statements

The sole owner (for EOOD) adopts the annual financial statements with a resolution. For OOD, the General Meeting adopts the financial statements and a decision on profit distribution.

Step 3: Prepare Application G2

Application G2 is the form for publishing annual financial statements in the Trade Register. It is accompanied by:

• Annual financial statements (balance sheet, income statement, notes)
• Resolution for adoption of the financial statements
• Declaration under Art. 13(4) of the Commercial Register Act (on the truthfulness of the declared circumstances)
• Power of attorney (if not filed by the manager personally)

Step 4: File with the Trade Register

Application G2 is filed:

• Electronically — via the Trade Register portal with a QES. Check the current state fee per the applicable tariff.
• On paper — at a Registry Agency office. Check the current state fee per the applicable tariff.

Step 5: Review and Publication

The registration officer reviews the application and attachments. If there are irregularities, instructions are given for correction within a 3-day period. Upon successful review, the annual financial statements are published in the Trade Register.

Penalties

Failure to comply with the obligation to publish annual financial statements results in serious financial penalties provided by the Accounting Act.

Fines for the Manager

If annual financial statements are not published on time, the manager of the company is subject to a fine of 250 to 1,500 EUR. This penalty is personal — even if the company is closed, the fine is imposed on the individual.

Monetary Sanction for the Company

The legal entity (EOOD, OOD, etc.) is subject to a monetary sanction of 100 to 1,500 EUR. This sanction is separate from the manager's fine — i.e., both are owed in case of a violation.

Repeat Violations

For repeat violations (failure to publish in the following year as well), fines and sanctions are doubled:

• For the manager: 500 to 3,000 EUR
• For the company: 200 to 3,000 EUR

Other Consequences

In addition to financial penalties, failure to publish annual financial statements can lead to:

• Difficulties in applying for a loan — banks check the published statements
• Problems in public procurement — up-to-date financial statements are required
• NRA audits — non-publication can trigger a tax audit
• Damaged reputation — partners and clients can check financial statements in the Trade Register