Taxation of an individual upon receipt of a liquidation share in an LTD.

I. General provisions:

Each partner in a limited liability company (LLC) in Bulgaria is entitled to a liquidation share. Each partner has a partnership share of the company’s property, the amount of which is determined according to his share in the capital. The share in the capital determines the property rights of the partners, one of which is the right to a liquidation share.

Continue reading “Taxation of an individual upon receipt of a liquidation share in an LTD.”

Submission of declarations and reports in the event of a change in the management of the EOOD (LTD.)

In the event of a change in the manager of a limited liability company (LLC) registered in Bulgaria, the question arises from which moment the newly elected manager should be entered in the VAT and Intrastat declarations, in the company’s reports, etc.

Continue reading “Submission of declarations and reports in the event of a change in the management of the EOOD (LTD.)”

Taxation of an individual upon receipt of a dividend in an LTD.

I. General provisions:

Each partner in a limited liability company (LLC) in Bulgaria has the right to participate in the distribution of the company’s profit. Each partner has a partnership share of the company’s property, the amount of which is determined according to his share in the capital. The share in the capital determines the property rights of the partners, one of which is the right to part of the profit (dividend right).

Continue reading “Taxation of an individual upon receipt of a dividend in an LTD.”

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.

Continue reading “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”

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.

Continue reading “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”

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.

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

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.

Continue reading “Declaring an asset sold by a non-trading company”

Exercising of labor activity and social security insuring of the owner and the manager of a limited liability company (Ltd.)

Bodies of the limited liability company (LTD.) in Bulgaria are a general meeting and a manager (managers), as the manager may not be a partner. The manager organizes and manages the activity of the company in accordance with the law and the general meeting’s decisions. The company is represented by the manager. Upon several managers each of them can act alone unless the Articles of association provides otherwise. In regard to the sole owner limited liability company (LTD.), the issues that are from the competence of the general meeting are decided by the sole owner of the company. The relations between the company and the manager are settled by a contract for assignment of the management. The contract is concluded in writing on behalf of the company through a person authorized by the general meeting of the partners or by the sole owner.

Continue reading “Exercising of labor activity and social security insuring of the owner and the manager of a limited liability company (Ltd.)”

Some advantages of outsourced accounting

When an individual starts a business and wants to be in the light of his activity, he must do everything possible to have accountants who handle correctly and professionally the financial and accounting issues of his/her company.

Each company has two options for keeping its accounts in order: a special department to deal with declarations, insurance, taxes and others, or hiring a company for outsourced accounting. The second option is often far more appropriate. Continue reading “Some advantages of outsourced accounting”

Establish a FOREX company in Bulgaria

Global Consult Europe is a consulting agency specialized in international corporate law. We will provide you with all the necessary know-how on how to start your own Forex business. Thanks to our partners we can offer you a full range of services that include:

Continue reading “Establish a FOREX company in Bulgaria”