November 10 2020

Bulgaria Proposes Higher Thresholds for Audits of Small Enterprises

Source: IBFD Tax Research Platform News

On 6 November 2020, Bulgaria proposed that the thresholds for statutory audits of annual financial statements of small enterprises be increased to BGN 3 million for the book value of assets and to BGN 6 million for net sales revenue. Currently, subject to a statutory audit, among other things, are the annual financial statements of small enterprises that exceed at least two of the following criteria:

  • the book value of the assets exceeds BGN 2 million;
  • the net sales revenue exceeds BGN 4 million; and
  • the average number of personnel for the reporting period exceeds 50.

The proposal was submitted to the Bulgarian parliament between the first and second reading of the 2021 draft bill for amendments to the Accountancy Act, which had been submitted to the parliament on 27 October 2020 by the Council of Ministers (technically included in the additional provisions of the draft bill for amendments to the Value Added Tax Act). As a next step, the proposal must be voted at second (final) reading by the parliament.

The proposal is available here (as a PDF and in Bulgarian only).

Further developments will be reported in due course.