Formation of an enforcement case for company obligations in Bulgaria

Every company that operates within the country, through its activities and the generation of revenues and expenses, also incurs obligations to the state – taxes on individuals or legal entities (income tax, profit tax, value added tax, etc.), mandatory insurance contributions, fines, property sanctions, and more based on the legislation in Bulgaria.

The payment of obligations to the state is carried out within deadlines specified in the law according to the type of obligation. When the amount due is paid after the statutory period, statutory interest is accrued at the base interest rate plus 10%.

On the NRA’s website /National Revenue Agency/, there is an Obligation Inquiry with the option to make a payment, where unpaid or unpaid within the voluntary payment period public obligations can be checked and paid.

For unpaid obligations on time, the National Revenue Agency has the right to initiate an enforcement case to forcibly collect the amounts, and to impose security measures / bank account seizures; claims from third parties (for example, your labor compensation); seizure of motor vehicles and other movable property, shares, goods in circulation, cash in hand; prohibition on immovable property or a ship/.

The formation of the enforcement case starts with the issuance of a voluntary execution notice, and after receiving it, a 7-day period follows. The voluntary execution notice generally contains:

• Information on the size of the obligations;
• Information about the declaration or act from which the obligations arise;
• The number of the enforcement case and the actions that will be taken if not paid within a 7-day period;
• NRA’s bank account to which the payment should be made;
• Contact information of the responsible public executor.

If there is no opportunity for full payment, it might be possible to negotiate a scheme for periodic payment of the obligations in parts, approved by and with the consent of the public executor, which will be valid until full payment. The proposal must be submitted to the NRA in writing. It may be rejected. If approved, the repayment plan will be executed. Once fully paid, the enforcement case is closed.

If you pay public obligations for which an enforcement case has been opened, payments should only be made to the bank account for the forced collection of public claims of the competent office or TD of the NRA. This bank account is different from the accounts used to pay tax and insurance obligations within the voluntary execution/payment periods.

Due to the serious consequences that may arise from enforced collection of obligations, it is crucial for every company to act responsibly in the periodic payment of public obligations.