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.”

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.

Continue reading “Taxation of self-insured persons”

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.

Continue reading “Insurance of self-insured persons”

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.

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

Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)

From the beginning of 2021 in Bulgaria 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)”

Cross-border supplies of goods between the EU and the United Kingdom and VAT refunds from 01.01.2021

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”