A civil partnership is established by a contract for a partnership, as two or more persons agree to combine their activities to achieve a common business goal.
Most often, a civil partnership is terminated by achieving the objective of the company or with the expiration of the time for which the company has been formed. In these cases, if the company is at a profit, owes payment of a corporate tax, and the balance sheet profit is distributed among the partners.
This raises the question of accurately determining the source of income of the partners and whether it should be completed in an annual tax return.
Continue reading “Taxation of the income of the partners in a civil partnership”
Foreign legal entities that carry out economic activity in Bulgaria through a place of economic activity, dispose of property in such a place of economic activity or receive income from a source in Bulgaria are taxable persons under the Corporate Income Tax Act and should form a tax financial result.
From 01.01.2020 in Bulgaria the rules for tax regulation are applied in case of transfers between a part of one enterprise located in the country and another part of the same enterprise located outside the country, which rules have been introduced in connection with the application of Directive (EU) 2016/1164 of the Council of 12 July 2016 laying down rules against tax avoidance practices which directly affect the functioning of the internal market (Directive 2016/1164).
Continue reading “Tax treatment under the Corporate Income Tax Act in case of transfer of fixed assets to a place of business in Bulgaria”
A new application form has been introduced for the following types of permits for extended residence in Bulgaria:
– a permit for extended residence and work type “Single permit for residence and work”;
– an extended residence permit for employment as a seasonal worker;
– a permit for extended residence and work type “EU Blue Card” for the purposes of highly qualified employment;
– an extended residence and work permit type “EU Blue Card” for the purposes of highly skilled employment of an EU Blue Card holder, issued by another Member State of the European Union, when the person has been residing in the territory of that Member State for 18 months and of the members of his family;
– a permission for a person transferred during an intra-corporate transfer;
– a mobility permit for an intra-corporate transfer.
Continue reading “Change in the applications for granting extended and permanent residence permits in Bulgaria”
Associations and foundations as non-profit legal entities freely determine the means to achieve their goals. These legal entities are established to carry out non-profit activities, but they may carry out additional economic activity related to the subject of their main activity, using the income to achieve the goals specified in their statute or constitutive act.
Continue reading “Are associations and foundations required to submit an annual corporate tax declaration?”
From 01.07.2021 the following types of distance selling of goods are introduced in the national VAT legislation: intra-Community distance selling of goods; distance selling of goods imported from third countries or territories; domestic distance selling of goods; delivery of goods, which is facilitated by an electronic interface.
Intra-Community distance selling of goods is the dispatch or transport of goods by the supplier or on his behalf from the territory of a Member State other than that in which the dispatch or transport of the goods to a non-taxable person, including a taxable person and a non-taxable legal person carrying out an exempt intra-Community acquisition ends. The goods must have been produced in the EU or have already been released for free circulation. The rules on intra-Community distance selling of goods do not apply to the following categories of goods: new vehicles; goods that are mounted and / or installed by or at the expense of the supplier; goods subject to a special price margin procedure for second-hand goods, works of art, collectors’ items and antiques.
Continue reading “Varieties of the distance selling of goods from 01.07.2021”
Important changes regarding the acquisition of Bulgarian citizenship have been adopted in the Bulgarian Citizenship Act. First of all, the amendments to the law optimize the opportunities for acquisition of Bulgarian citizenship by naturalization by foreigners who have received permanent residence in Bulgaria, based on investments made by them, as well as by their spouses. Long-term investments and job creation are encouraged for the purpose of acquisition of Bulgarian citizenship upon shortened periods of residence.
Continue reading “Important changes regarding the acquisition of Bulgarian citizenship”
The grounds for reuniting the family of a foreigner with a permitted residence in Bulgaria are legally changed. A foreigner, with a residence permit of not less than one year on the territory of Bulgaria, can submit an application for obtaining the right of temporary residence (prolonged-stay) from a member of his/her family, if any of the following grounds exist in relation to his/her family member:
– if there are grounds for granting him/her permanent residence;
– if he/she is a member of the family of a foreigner who has received a permanent or temporary residence (prolonged-stay) permit, as well as of a foreigner who has received international protection – when the documents certifying family ties and the right to maintenance are recognized or admitted for execution under Bulgarian law;
– if he/she is a member of the family of a foreigner with granted asylum, temporary protection or humanitarian status – when the documents certifying the family ties and the right to maintenance are recognized or admitted for execution under the Bulgarian legislation;
– if he/she is a member of the family of a long-term resident foreigner – he/she may obtain a long-term residence permit for a period of one year with the possibility of renewal, without exceeding the permitted period of residence of the holder;
– if he/she is a member of the family of a holder of a permit for a person transferred during an intra-corporate transfer – he/she may obtain a temporary residence (prolonged-stay) permit for the period of residence of the holder.
Continue reading “Change in the grounds for family reunification of a foreigner with a residence permit in Bulgaria”
From the beginning of 2021, the deadline for filing annual tax returns (ATR) for corporate tax (until March 31) has been changed, and the new deadline is now from March 1 to June 30. The same applies to the deadline for payment of corporate tax, which has been changed by 3 months and is now until June 30.
The deadline for paying tax on expenses has also been changed by three months and is now until June 30.
The change in the deadlines optimizes the preparation of the annual tax returns of the companies and improves the process of annual accounting closing. Systematic and predictable consistency in the fulfillment of the obligations for declaring and submitting information to the National Revenue Agency is also achieved. Continue reading “Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)”
Non-profit legal persons entered in the register of non-profit legal persons to district courts are obliged to submit an application for re-registration until 31 December 2022. In this way the term for re-registration is prolonged with 2 years. Continue reading “The term for re-registration of non-profit legal persons is prolonged with 2 years”
As of the end of the transition period (31 December 2020), the EU rules in the field of VAT, and in particular Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax and Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State, no longer apply to and in the United Kingdom. This has in particular the following consequences concerning the treatment of taxable transactions of goods and VAT refunds:
I. VAT RULES FOR CROSS-BORDER SUPPLIES OF GOODS
Continue reading “Cross-border supplies of goods between the EU and the United Kingdom and VAT refunds from 01.01.2021”