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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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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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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A civil partnership in Bulgaria 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.
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Associations and foundations in Bulgaria 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.
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