First Reding of the Draft Act on the Measures during State of Emergency, declared by resolution of 13 March 2020 by the National Parliament and its expected changes
Breaking Legal Newsletter (19 March 2020)
In view of the state of emergency, which Bulgaria is facing in order to cope with the COVID-19 pandemic, Deloitte Legal Law Firm puts your awareness first. In this regard, we will send business information on a regular basis about current hot topics that according to us may be of direct concern to you.
On 18 March 2020, the Draft Act on the Measures during State of Emergency, declared by resolution of 13 March 2020 by the National Parliament, was voted in plenary at first reading. Parliament's second reading of the draft is scheduled for Friday, 20 March 2020.
Considering the statutory opportunity for the members of parliament to propose in written amendments and supplements in the draft, adopted during its first reading yesterday, 18 March 2020, a number of proposals were received, including:
- Introducing regulatory tool to regulate the prices of essential goods and products, as well as those necessary for the epidemic control;
- Introducing financial reliefs for natural persons and legal entities:
- Until suspension of the state of emergency, all customers of banks and credit institutions (within the meaning of the Credit Institutions Act) to postpone payments under consumer, mortgages and housing loans, as well as loans for micro, small and medium-sized enterprises, corporate financing, incl. contributions for consumer loans;
- Until suspension of the state of emergency, the application of interest ceases to accrue on the principals on consumer, mortgage and housing loans, as well as loans for micro, small and medium-sized enterprises, corporate financing, including credit and business credit contributions, as well as to loans granted by financial institution.
- Extension of the term for payment of the due amounts for electricity supply to household customers from 10 to 20 days;
- Amendments to Corporate Income Tax Act during the declared state of emergency - extension of statutory deadlines, including the deadline for submission of an annual tax return;
- With regard to the amendments of the Labor Code, the following is proposed:
- Refinement of provisions regarding the work from home regime;
- Guaranteeing equal rights for all employees by abolition of the possibility for an employer to terminate of the work of certain employees only;
- Abolition of the possibility for the employer to have the right to grant the employee unpaid leave in case of termination of the work of an enterprise or part of it by virtue of order of the employer or state authority.
- Until the suspension of the state of emergency all legal entities and sole proprietors, whose activity is hindered or suspended due to the implementation of the anti-epidemic measures provided by the law, to be entitled to request rescheduling of their tax and social security obligations;
- Proposal for suspension of the awarding of public tenders and project competitions and for pause of the deadlines of the ones opened prior the declared state of emergency. An exception is provided for public contracts of key importance for the state and public interests, as well as for such ensuring the life and health of all citizens, the national security or the implementation of measures during the state of emergency;
- Changes and supplementary in the Penal Code, the Health Act, the Medical Establishments Act, the Public Procurement Act, etc.
Deloitte Legal Law Firm remains at your disposal for further information and questions.
Deloitte Legal Law emergency contacts:
- Attorney-at-law Reneta Petkova - Managing Partner, Banking and Finance, email: firstname.lastname@example.org
- Attorney-at-law Georgi Simeonov – Director, Tax practice, email: email@example.com
- Attorney-at-law Zvezdelina Filova - Senior Manager, Labour and Commercial Disputes, email: firstname.lastname@example.org
- Attorney-at-law Miglena Micheva - Manager, Labour Law, email: email@example.com
- Attorney-at-law Kaloyan Yordanov - Manager, Commercial and Corporate Law, email: firstname.lastname@example.org
- Attorney-at-law Adelina Mitkova - Manager, Banking and Finance, email: email@example.com
- Attorney-at-law. Pavlin Stoyanoff - Manager, Energy and Resources, email: firstname.lastname@example.org