Requirements for the documents with which a Bulgarian company is exempted from double taxation

When providing services to foreign clients, Bulgarian companies find themselves in a situation where they must document the payment of taxes abroad to the Bulgarian tax authorities.

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Declaration of income received under a civil contract

When concluding a civil contract in Bulgaria, the question arises as to what tax the income received under it is taxed.

Taxable under the Personal Income Tax Act (PITА) is the income from all sources acquired by a taxable person during the tax year, except for income that is exempt from tax by law.

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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).

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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”

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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Taxation of the income of the partners in a civil partnership

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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5 reasons to trust the professionals for registration of your Bulgarian company

The creation of a business company or even a sole trader in Bulgaria is an activity that is important to be done by the rules, because the appearance of a newly created business depends on it. Many people believe that they can successfully pass the administrative and bureaucratic procedures, with the intention to save the fee that would have paid to the specialist performing registrations of companies. Not long after, the majority of these people find themselves so entangled in red tape that ultimately again recourse to an expert, which is a waste of time and money.

If you want to avoid the bitter experience and start as soon as possible your business activity it is important to select a team to take on the entire burden of the cumbersome procedure. During this time, you can focus to the activity, corresponding to your competence, laying the foundation for a successful and prestigious business.

5 reasons to trust the professional registration of companies

The reasons to trust the professionals are many, but here we will suggest only 5, we believe that their significance is greatest. Most of us don’t soberly judge the situation until we understand from experience how great is the difficulty to fight the bureaucracy not having the necessary competence and experience. Here are the main reasons ordered but not prioritized. Continue reading “5 reasons to trust the professionals for registration of your Bulgarian company”

How to start a beauty salon in Bulgaria

How to open a beauty salon/ hair salon/ beauty parlor in few easy steps?

  1. Company registration, by which you can do business in Bulgaria.
  2. Tax registration – voluntary under Art. 96 of VAT Act.
  3. Purchase and registration of a cash register (a fiscal device).
  4. Ensure a suitable object in which the activity will be performed – it can be hired (a lease contract is required) or private property (a title deed is required).
  5. The purpose of the property should be for business activity, in this context a change of status of the property may be indispensable.
  6. Certificate of commissioning.
  7. Observed requirements on fire safety of commercial property – a permit issued by General Directorate Fire Safety and Protection of Population.
  8. A notification for opening an object of public designation to the relevant regional health inspectorate and obtaining a certificate of registration after verification.
  9. Possession of a master certificate and registration pursuant to Skilled Crafts Act.
  10. Preparation of internal rules and operation instructions.
  11. Registration of working time of a stationery commercial site – it is done in the relevant municipality.

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