For the income acquired from his activity in Bulgaria, the self-insured person is obliged to issue a reporting document.
A self-employed person, who has acquired income from his activity and has declared to the payer of the income the circumstance that he is self-insured, owes in advance a tax on the difference between the taxable income and the legally recognized expenses for his activity, as well as the social security contributions, which he is obliged to make at his own expense for the months of the quarter during which the taxable income has been acquired.
The due advance tax is 10%. The advance tax is paid by the self-insured person by the end of the month following the quarter of the acquisition of income. The declaration for the due advance tax is submitted within the term for payment of the tax.
No advance tax is paid on income acquired in the fourth quarter of the tax year. The tax for this period is paid after filing the annual tax return from January 10 to April 30 of the year following the year of acquisition of income. It is done with it an equalization of the due insurances and tax, according to the taxable income during the year.
This order refers to the taxation of all income of the self-insured person, regardless of whether it arises from the activity for which the person is registered as а self-insured person.
Regarding VAT registration, the self-insured person must register for VAT if his income reaches BGN 50,000 or more for a period not longer than the last 12 consecutive months before the current month. The self-insured person may optionally also make a voluntary VAT registration.
For advice in connection with the taxation of self-insured persons you can contact our experts.