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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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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