Economic measures to tackle the crisis


Dear clients,

Due to the unusual situation with Covid - 19, namely the pandemic, we were all unprepared. We, as the accounting department, had to make the necessary changes and reorganization very quickly and in no time to meet this pandemic challenge. In this regard, we continue to work on paperwork, filing tax returns and everything needed for the tax authorities. We have created flexible mechanisms to prevent our workflow from stopping because the pandemic is a pandemic, but deadlines are deadlines and must be respected. From the first day of the state of emergency, we continue to work and fulfill our responsibilities. We want to inform you that Bulgaria is one of the countries that has taken preventative measures from the beginning and on time, but it is one of the few that does not have good business measures. We currently have two measures that should support and facilitate business. The first is that there is an extension of the deadlines for filing the company's annual tax return and paying their corporate tax until 30.06.2020, but for all other obligations - DOD, insurance and down payments, the deadlines remain the same. Government funding is also available for certain business support sectors, with aid being 60% / 40% . 60% of one employee's gross salary will be paid by the state and the remaining 40% will be paid by the employer plus social and health insurance for the full amount. At this point, employers who fall into specific sectors can apply for compensation ( Retail trade, passenger rail, land, coastal and maritime transport, hotels and accommodation, restaurants and fast food establishments, drinking establishments, travel agency and operator, cultural and sporting activities and other activities ) ; request payment of compensation to employees, employed in the sectors, through the month, preceding the announcement of the extraordinary position ; there is no obligations for taxes and compulsory social security contributions for the state ; have not been declared bankrupt or are not in bankruptcy or liquidation proceedings ; preserve the busyness of their employees for which they have received compensation for the period not less than the period for which the compensations have been paid ; they do not terminate their employment contracts with employees during the period for which they will be compensated. It is under discussion, but has not yet been finally adopted and the right to participate in the scheme 60% / 40% to have all the companies except the ones mentioned above, which can prove through financial documents the presence of a drop in sales revenue over 20% from March 2020 compared to March 2019 year. The necessary application documents for funding will be submitted electronically through the Labor Office.

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