Tax treatment of services provided by a branch of a foreign trader located in another EU member state to Bulgarian branch of this trader

The registration of a branch of a foreign merchant in Bulgaria does not lead to the creation of a new legal entity, but only to a territorially and organizationally separated part of it.

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Deduction of tax credit for expenses for travel and business trips of the managers of a foreign company, incurred in connection with the activity of its branch in Bulgaria

When registering a branch of a foreign trader in Bulgaria, a question arises whether the expenses for travel and business trips of the managers of the foreign trader, which are reported in Bulgaria, are subject to tax credit deduction.

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Place of reporting of expenses for travel and business trips of managers of a foreign company, made in connection with the activity of its branch in Bulgaria

When registering a branch of a foreign merchant in Bulgaria, the question arises in which country should the expenses for travel and business trips of the managers of the foreign merchant be accounted for.

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Tax treatment of the income realized remotely from Bulgaria by a natural person working for a foreign company located in another country

In the conditions of a changeable situation, some of the companies manage to adapt by implementing their commercial activity through remote work of their employees. A situation often arises when a person hired on work abroad has to perform his duties remotely from the territory of another country. Until one moment this person has paid taxes in the country where the company has its registered office, and subsequently, after beginning the remote performance of his duties in another country, the question arises about the tax treatment of the income realized through remote work.

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Accounting documentation when carrying out the activity of buying things by courier

When carrying out a transaction by courier in Bulgaria, a question arises about the documentary justification of the business operation. In order for the business operation to be documented, a primary accounting document must be issued, accurately reflecting the business operation. In this case, the costs incurred may be recognized as an accounting expense.

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Branch of a foreign trader in Bulgaria

I. General provisions

In view of the tax advantages that Bulgaria provides for foreign investors, and taking into account the country’s membership in the European Union, one of the often preferred forms of commercial activity in Bulgaria by traders from other countries is the establishment of a branch of a foreign trader.

The registration of a branch of a foreign trader in Bulgaria does not lead to the creation of a new legal entity, but only to a territorially and organizationally separated part of it. The branch has its headquarters, object of activity, a person who manages it, workers, etc. However, the branch does not own separate property other than that of its principal. Continue reading “Branch of a foreign trader in Bulgaria”

Declaring an asset sold by a non-trading company

In the situation of a sale of a company asset (e.g. a car) in a reporting period during which no commercial activity has been carried out in Bulgaria by a company, the question arises whether this company can be defined as a person that has not carried out activity within the meaning of the Law on accounting and whether it should declare the amount of the sale of the asset.

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Taxation of self-insured persons

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.

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Insurance of self-insured persons

The obligation for insurance of self-insured persons in Bulgaria arises from the day of commencement or resumption of employment activity and continue until its interruption or termination. Upon commencement, interruption, resumption or termination of any employment activity, the self-insured person submits a declaration according to a sample.

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Tax treatment of the compensation received by a natural person for suffered property and non-property damages

Taxable under the Bulgarian Personal Income Tax Act (PITA) are the incomes from all sources acquired by the taxable person during the tax year, with the exception of the incomes which are non-taxable under the law.

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