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Document Information:
- Year: 2010
- Country: Bulgaria
- Language: English
- Document Type: Domestic Law or Regulation
- Topic: Philanthropy and Corporate Social Responsibility,Taxation and Fiscal Issues
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LAW ON TAXES ON THE INCOME OF NATURAL PERSONS
In force from 01.01.2007
Prom. SG. 95/24 Nov 2006, amend. SG. 52/29 Jun 2007, amend. SG. 64/7 A ug
2007, amend. SG. 113/28 Dec 2007, amend. SG. 28/14 Mar 2008, amend. SG. 43/29 Apr
2008, amend. SG. 106/12 Dec 2008, amend. SG. 25/3 Apr 2009, amend. SG. 32/28 Apr
2009, amend. SG. 35/12 May 2009, amend. SG. 41/2 Jun 2009, amend. SG. 82/16 Oct
2009, amend. SG. 95/1 Dec 2009, amend. SG. 99/15 Dec 2009, amend. SG. 16/26 F eb
2010, amend. SG. 49/29 Jun 2010
Part one.
GENERAL PROVISIONS
Chapter one.
SUBJECT MATTER OF THE LAW, OBJECT OF TAXATION AND TAXABLE PERSONS
Subject Matter of the Law
Art. 1 .
T his
L aw
sh all
regulate th e
taxation o f
natural persons, in clu din g
th eir
in co m e
fro m
activity as a sole proprietor.
Object of Taxation
Art. 2. The object o f
taxation under th is
Law s h all
b e
the income o f
lo cal
and foreign natural
persons.
Taxable Persons
Art. 3. The taxable persons under this Law shall be:
1. the local and foreign natural persons that are bearers of the obligation to pay taxes under this
Law;
2. the local and foreign persons that are obligated to withhold and pay taxes under this law.
Local Natural Persons
Art. 4. (1) Regardless of the citizenship thereof, a local natural person shall be a person:
1. whose permanent place of residence is in Bulgaria, or
2. w ho
sp en ds
in sid e
th e
te rrito ry
of
B ulg aria
m ore
th an
1 83
d ay s
in
each
p erio d
o f
1 2
consecutive months, or
3. w ho
re sid es
ab ro ad
on
assig nm en t
of
th e
B ulg aria n
Sta te ,
its
au th oritie s
an d/o r
its
organizations, or Bulgarian establishments, and the members of his/her f a m ily
shall also be local natural
persons, or
4. who has his/her centre of vital interests in Bulgaria.
(2) For the purposes of para. 1, item 2
the person s h all
be regarded as a
local one for the year
during which his/her stay exceeds 183 days. The day of entering the country and the day of leaving the
country shall be regarded as days of stay within the country.
(3) For th e
purposes o f
para. 1 ,
ite m
2
th e
period o f
s ta y
in
Bulgaria fo r
th e
s o le
purpose o f
receiving education or medical treatment shall not be regarded as a period of stay in Bulgaria.
(4) For the purposes of para. 1, item 4
the person s h all
have his/her centre of v ita l
interests in
Bulgaria in
those cases where the interests of the person are closely connected with the country. In the
course o f
determining those interests, th e
fo llo w in g
m ay
b e
taken in to
consideration: th e
fa m ily ,
th e
property, the place in which the person carries out his/her employment, professional or business activity,
and the place from which he/she manages his/her property.
(5) A
p ers o n
w ho
is
p erm an en tly
re sid in g
in
th e
country, however, h is /h er
cen tr e
o f
v ita l
interests is not located in the country, shall not be a local natural person.
Foreign Natural Persons
Art. 5. Foreign natural persons s h all
be the ones who are not local persons within the meaning
of Art. 4.
Tax Obligations of Local Natural Persons
Art. 6.
L ocal
natu ra l
pers o ns
sh all
be
beare rs
of
th e
oblig atio n
to
pay
ta x es
on
in co m e
originating from sources located either within the Republic of Bulgaria or abroad.
Tax Obligations of Foreign Natural Persons
Art. 7 .
F ore ig n
n atu ra l
p ers o ns
sh all
b e
b eare rs
o f
th e
o blig atio n
to
p ay
ta x es
o n
in co m e
originating from sources located within the Republic of Bulgaria.
Income from Sources within the Republic of Bulgaria
Art. 8. (1) The income originating either from business activity through a certain establishment
inside the territory of the Republic of Bulgaria or from disposal of the property of such an establishment
shall be income from a source in Bulgaria.
(2) T he
in co m e
orig in atin g
eith er
fro m
perfo rm an ce
pro vid ed
in sid e
th e
te rrito ry
of
th e
Republic of Bulgaria or from services provided inside the territory of the Republic of Bulgaria s h all
be
income from a source in the Republic of Bulgaria.
(3) T he
in co m e
originating fro m
d iv id en ds
a n d
liquidation sh are s
in
lo cal
le g al
e n titie s
a n d
unincorporated co m pan ie s,
in clu din g
jo in t
v en tu re
contracts sh all
b e
in co m e
fro m
a
so urc e
in
th e
Republic of Bulgaria.
(4) The income originating from the transfer of an establishment of a sole proprietor, registered
in
th e
Republic o f
Bulgaria, s h all
b e
income from a
source in
th e
Republic o f
Bulgaria, regardless to
whether the transferor is a local person or not.
(5) (amend. ?
S G
113/07, in
fo rc e
fro m
01.01.2008) Awards a n d
remuneration fo r
a ctiv ity
carried o ut
in sid e
th e
territory o f
th e
country b y
fo re ig n
n atu ra l
persons ?
p ublic
fig ure s,
sc ie n tif ic
workers, e m in en t
fig ure s
in
arts, culture a n d
sport sh all
b e
in co m e
fro m
a
source in
th e
Republic o f
Bulgaria, including those cases in which the income has been due or paid through a third person, such as
D Q L P S U H V D U L R D J H Q F S U R G X F H U ? V I L U P R U D Q R W K H U L Q W H U P H G L D U
(6) The following income due/paid b y
local persons, or b y
a
commercial representative office,
or from a place of business activity or an establishment within the Republic of Bulgaria, shall be income
from a source in the Republic of Bulgaria:
1. in dem nitie s
a n d
compensations re aliz ed
in
lie u
o f
o r
a lo ng
w ith
other in co m e
originating
from a source in the Republic of Bulgaria;
2. p ecu nia ry
a n d
non-pecuniary awards in
g am es
a n d
competitions, th ese
awards n ot
b ein g
provided by an employer or an assignor;
3. remuneration oth er
th an
remuneration under
em plo ym en t
le g al
re la tio nsh ip s
p aid
to
an
employee or a
member of the management or supervisory body of a
Bulgarian legal entity, or a
branch
of a foreign person, an employee in
a commercial representative office of a foreign person, or any other
person performing identical or similar functions;
4. interest, including interest under a lease contract;
5. in co m e
originating fro m
re n t
o r
a n y
other granting o f
th e
u se
o f
m ovab le
o r
im movab le
property;
6. remuneration under franchising contracts and factoring contracts;
D X W K R U ? V D Q G O L F H Q F H U H P X Q H U D W L R Q
8. remuneration for technical services;
9. remuneration under enterprise management contracts and supervision contracts;
Q H Z ? 6 * L Q I R U F H I U R P V W X G J U D Q W V L Q W K H V W D W H D Q G D E U R D G
Q H Z ? 6 * L Q I R U F H I U R P L Q F R P H I U R P V R F L D O L Q V X U D Q F H D Q G L Q V X U D Q F H
(7) (amend. ?
SG 113/07, in
force from 01.01.2008) The income referred to in
para. 6
due b y
local le g al
e n titie s
o r
lo cal
so le
proprietors through a
p la ce
o f
b usin ess
a ctiv ity
o r
a n
establishment
outside the country or paid b y
local natural persons through a n
establishment outside the country s h all
not be income from a source in the country.
(8) T he
income originating fro m
stocks, shares, compensatory instruments, investment bonds
and oth er
fin an cia l
asse ts
em itte d
by
th e
S ta te ,
m unic ip alitie s,
lo cal
le g al
en titie s,
unincorporated
companies o r
fro m
a n y
fo rm s
o f
jo in t
venture, a s
w ell
a s
th e
in co m e
originating fro m
transactions
therein shall be income from a source in Bulgaria.
(9) The income originating from agriculture, forestry, game husbandry and f is h
industry inside
the territory of the country shall be income from a source in Bulgaria.
(10) The income originating from the use, s a le ,
exchange or a n y
other transfer o f
immovable
property, in clu din g
th e
common in div is ib le
p arts
th ere o f
an d
lim ite d
property rig hts
thereupon, th e
immovable property being located in sid e
the territory o f
the country, s h all
b e
income from a
source in
the country.
(11) In determining the source of income under this Art. the place in
which the income is
paid
shall not be taken into consideration.
Documenting and Reporting the Income
Art. 9. (1) The taxable persons s h all
b e
obligated to get registered and to report the sales they
have made, as well as the services they have provided, by way of issuing a fiscal cash-register slip from
a fis c al
device in
accordance with the procedure set forth in
a n
Ordinance o f
the Minister o f
Finance,
except where the payment is made through the bank or by way of a set-off.
(2) Those ta x ab le
persons th at
h av e
n o
obligation to
is su e
a
fis c al
cash-register slip
fro m
a
fiscal d ev ic e
a s
s e t
forth in
para. 1 ,
s h all
is su e
a
document evidencing th eir
income originating fro m
sources referred to in
Art. 10, para. 1, items 3 and 4, this document containing the requisites referred to
in Art. 7, para. 1 of the Accounting Law.
(3) The provisions of para. 2
s h all
not apply to the income on condition that upon receiving it
the payer of the income has issued the Paid Amounts Form provided for in
this Law, or the income has
been charged with a final tax in accordance with the procedure set forth in Chapter Six.
Chapter two.
INCOME AND TAXES
Types of Income
Art. 1 0.
(1 )
Depending o n
its
source, th e
ty pes
o f
in co m e
under th is
L aw
a re
th e
fo llo w in g
ones:
1. income from an employment legal relationship;
2. income from business activity as a sole proprietor;
3. income from other business activities;
4. income from rent or any other granting of the use of rights or property;
5. income from the transfer of rights or property;
6. (amend. ?
SG 113/07, in
force from 01.01.2008) income from sources referred to in
Art. 35,
as well as income taxable with final taxes under this Law.
(2) D ep en din g
o n
th e
fo rm
o f
p ay m en t,
th e
in co m e
m ig ht
b e
p ecu nia ry
o r
non-pecuniary
income.
(3) In those cases where the income is
in
the form of foreign currency, it s h all
be calculated in
BGN in
accordance with the f ix in g
rate o f
the Bulgarian National Bank a s
at the date o f
receiving the
income.
(4) The value o f
non-pecuniary income s h all
b e
calculated in
BGN a s
at the date o f
receiving
the income, that value being the market price of the non-pecuniary income.
Receiving Income
Art. 11. (1) Unless th is
Law provides otherwise, the income s h all
b e
regarded a s
received o n
the date of:
S D P H Q W ? Z K H U H W K H S D P H Q W K D V E H H Q P D G H L Q F D V K
2. crediting the account of the recipient of the income, or the date of receiving the cheque ?
in
the cases of cashless payment;
U H F H L Y L Q J W K H F R Q V L G H U D W L R Q ? L Q W K H F D V H V R I Q R Q S H F X Q L D U L Q F R P H
(2) In
th e
case s
o f
sa le ,
ex ch an ge
o r
o th er
tr a n sfe r
fo r
consideration o f
rig hts
o r
property
referred to in Art. 33, para. 3 the income shall be regarded as received as at the date of transfer.
(3) The income s h all
be regarded as received b y
the natural person in
those cases where, either
by order of the natural person, or b y
agreement between the natural person and the payer, the payment
or consideration h as
b een
re ceiv ed
b y
a
th ir d
person. A s
fo r
determining th e
d ate
o f
re ceiv in g
th e
payment it is paras. 1 and 2 that shall apply.
(4) (amend. ?
SG 113/07, i n
force from 01.01.2008) The income referred to i n
Art. 33, para. 11
shall b e
regarded a s
received a s
at the date o f
the court decision regarding the transfer and removal o f
the sole proprietor from the Register.
Taxable Income
Art. 12. (1) Taxable income under th is
Law s h all
b e
th e
income originating from a ll
sources
received b y
th e
ta x ab le
person d urin g
th e
y ear
o f
taxation, w ith
th e
exception o f
th e
in co m e
th at
is
non-taxable by virtue of law.
(2) In
th ose
case s
w here
th is
L aw
pro vid es
fo r
a
ded uctio n
of
ex pen se s,
th e
ex pen se s
determined under
th is
L aw
sh all
be
ta k en
in to
co nsid era tio n
in
dete rm in in g
th e
ta x ab le
in co m e
originating from the respective source.
Non-Taxable Income
Art. 13. (1) The following income shall be non-taxable:
1. the income received during the year of taxation from the sale or exchange of:
Z
(amend. ?
SG 95/09, in
force from 01.01.2010) one immovable housing property, provided
that more than three y ears
h av e
passed between th e
date o f
its
acquisition a n d
th e
date o f
th e
s a le
or
exchange;
b) u p
to
tw o
p ie ces
o f
im movab le
property, o r
ag ric u ltu ra l
property an d
fo re st
la n d
p lo ts
regardless of the number thereof, providing that the time elapsed between the date of acquisition and the
date of sale or purchase is more than 5 years;
2. the income originating from sale or exchange of movable property, with the exception of the
following:
Z
road, a ir
and water means o f
transport, providing that the time elapsed between the date o f
acquisition and the date of sale or purchase is less than 1 year;
b) works of art, objects for collections and antiquities;
c) stocks, shares, compensatory instruments, investment bonds a n d
other fin an cia l
assets, a s
well as the income originating from trade in foreign currency;
d) movable property delivered to persons having the right to perform collection, transportation,
utilization or disposal of waste in accordance with the Law on Waste Management;
3. (amend. –
SG 106/08, in
force from 01.01.2009) the income originating from disposition o f
fin an cia l i n str u m en ts i n t h e s e n se o f § 1 , I te m 1 o f t h e A dditio nal P ro vis io ns;
4. th e
pro fit,
or
an y
oth er
so urc e
of
th e
co m merc ia l
F R P S D Q ? V
eq uity ,
w hic h
has
been
distributed in
th e
form o f
n ew
stocks a n d
shares, a s
w ell
a s
th e
profit, o r
a n y
other source o f
equity,
which has been distributed in the form of increase of the par value of current stocks and shares;
5. S H U V R Q V ?
income originating from compensation in
accordance w ith
a
statutory instrument,
this being compensation for the sale or exchange of the compensatory instruments and investment bonds
received as compensation;
6. the income from mandatory insurance in Bulgaria or abroad;
7. the income from additional voluntary insurance, th is
income b ein g
received after acquiring
the rig ht
to
ad ditio nal
pen sio n;
th e
in co m e
orig in atin g
fro m
th e
in vestm en t
of
te ch nic al
re se rv es
received under
in su ra n ce
co ntr a cts ;
th e
in co m e
orig in atin g
fro m
in vestm en t
of
th e
asse ts
of
th e
additional pension insurance funds distributed among the individual accounts of the insured persons;
8. (amend. –
SG 106/08, in
force from 01.01.2009) the interest income from deposits in
lo cal
commercial banks and branches of foreign banks established in
another Member State of the European
Union or in another country – party to the Agreement on the European Economic Area;
9. (amend. ?
SG 32/09, in
force from 01.01.2010) interest a n d
discount from Bulgarian State
bonds, municipal and corporative bonds, as w ell
as from other such-like bonds, issued according to the
legislation of another Member State of the European Union, or of a state ?
party to the Agreement on the
European Economic Area;
10. interest on receivables established through the courts, these receivables not being subject to
taxation, and the adjudged compensation for court costs;
11. the adjudged compensation and other payments i n
the cases of medium and grievous bodily
injury, occupational disease or death;
12. compensation fo r
fo rc ib le
expropriation o f
property fo r
th e
n eed s
o f
th e
S ta te
an d
th e
municipalities;
13. co m pen sa tio n
fo r
pecu nia ry
an d
non-p ecu nia ry
dam ag es,
w ith
th e
ex cep tio n
of
th e
compensation for loss of profit;
14. insurance indemnities in those cases where an insurance event has occurred;
15. social insurance benefits and aids received on the grounds of the Law of Integration of the
People W ith
D is a b ilitie s,
th e
L aw
o n
th e
Protection o f
Children, th e
L aw
o n
F am ily
Allowances fo r
Children, or on the grounds of another statutory instrument, as well as the unemployment compensations
and benefits received by virtue of a statutory instrument;
16. the aids from social activity organizations established under the law, and from not-for-profit
legal entities registered for the purpose of carrying out activities for the public benefit;
17. th e
amounts received o n
th e
grounds o f
th e
L aw
o n
F am ily
Allowances fo r
Children, a s
well as the amounts for maintenance received b y
the persons authorized thereof under the provisions of
the Family Code;
18. the scholarships awarded to natural persons for their training within the country and abroad;
19. those pecuniary amounts and gifts which have been received on the grounds of a
statutory
instrument by donors of blood, blood components and biological products for humane purposes;
20. th ose
pecu nia ry
am ounts
an d
obje cts
w hic h
hav e
been
re ceiv ed
fro m
participation in
gambling games within the meaning of the Law on Gambling;
21. (a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) th ose
p ecu nia ry
amounts an d
o bje cts
which h av e
b een
received fro m
participation in
g am es
other th an
th e
o nes
referred to
in
ite m
2 0
in
which the winnings are determined randomly;
22. the State and national awards granted to authors in
the f ie ld
of culture and sportsmen, and
the awards granted to winners in
competitions under programmes and projects which are either wholly
or partially financed by the “Culture” National Fund;
23. (amend. –
S G
106/08, in
force fro m
01.01.2009) th e
amounts fo r
business travelling a n d
accommodation allowances re ceiv ed
u nder
relationships other th an
employment o nes,
providing th at
they are a t
the expense o f
the assignor a n d
that h as
been evidenced through documents in
accordance
with th e
operative legislation, a s
w ell
a s
th e
d aily
allowances, providing that th ey
d o
not exceed th e
double amount of those for persons under employment relationships;
24. the income originating from rent, lease or any other granting of the use of agricultural land
for consideration;
25. th e
remuneration o f:
th e
members o f
th e
s ta ff
o f
diplomatic missions in
accordance w ith
Vienna Convention on diplomatic relationships; the members o f
consulates in
accordance with Vienna
Convention o n
consular relationships; th e
sta ff
o f
inter-State a n d
intergovernmental organizations in
accordance with the international treaty concluded with the respective organization, and the members of
the families of the said persons, inasmuch as the respective international treaty provides for that;
26. th e
in co m e
orig in atin g
fro m
th e
sa le
or
ex ch an ge
of
pro perty
acq uir e d
by
rig ht
of
succession or legacy, a s
w ell
a s
property that h as
been restituted in
accordance with the procedure set
forth in a statutory instrument;
27. consumer dividends from cooperative societies established under the Law on Cooperative
Societies.
(2) (a m en d.
?
SG
95/0 9,
in
fo rc e
fro m
01.01.2010) T he
pro perty
acq uir e d
by
rig ht
of
succession, or legacy, or donation and the property acquired with restituted right of ownership s h all
not
be deemed income.
U H Y R N H G ? 6 * L Q I R U F H I U R P
(4) (n ew
?
S G
95/09, in
fo rc e
fro m
01.01.2010) N o
ta x
sh all
b e
d efin ed
a s
o f
th e
d ate
o f
acquisition of shares and stock, obtained against non-monetary contributions in trade companies.
(5) (prev. par. 4, amend. ?
SG 95/09, in
force from 01.01.2010) The provisions of par. 1, 2 and
4 shall not apply to the income from business activity of a trader within the meaning of the Commercial
Law, including the activity of a sole proprietor.
Taxation of Income
Art. 14. (amend. ?
SG 113/07, i n
force from 01.01.2008) (1) The income referred to i n
Chapter
Five received during the year o f
taxation s h all
b e
subject to a
tax on the total annual basis of taxation,
except the income from business activities as a sole trader.
(2) Income from business activities as a sole trader s h all
be charged b y
tax on the annual basis
of taxation as per Art. 28.
(3) The income referred to in Chapter Six shall be subject to a final tax.
(3) Natural persons, in clu din g
so le
traders, sh all
b e
su bje ct
to
a
patent ta x
w ith
regards to
income from patent activities under th e
terms a n d
following th e
procedures la id
down in
th e
Law fo r
Local Taxes and Fees. Regarding income from other activities, persons s h all
b e
taxed pursuant to th is
Law.
Part two.
TOTAL ANNUAL BASIS OF TAXATION
Chapter three.
GENERAL PROVISIONS
Year of taxation
Art. 15. The year of taxation shall be the calendar year.
Determining the Taxable Income and the Basis of Taxation
Art. 1 6.
(1 )
T he
ta x ab le
in co m e
a n d
th e
b asis
o f
taxation s h all
b e
determined separately fo r
each source of income, in observance of the provisions of this Law.
(2) (s u ppl.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) In
determining th e
ta x ab le
in co m e,
th e
following income shall not be included: the income subject to a f in al
tax under this Law and the income
subject to
a
fin al
ta x
u nder
th e
L aw
o n
Corporate In co m e
Taxation, as
w ell
as
in co m e,
su bje ct
to
taxation by patent tax pursuant to the Law for Local Taxes and Fees.
Total Annual Basis of Taxation
Art. 17. (amend. ?
SG 113/07, in
force from 01.01.2008) The total annual b asis
o f
taxation is
the aggregate of the annual bases of taxation as per Art. 25, 30, 32, 34 and 36, decreased by the tax relief
provided for in this Law.
Chapter four.
TAX RELIEF
Tax Relief for Persons of Reduced Capacity for Work
Art. 18. (amend. ?
SG 113/07, in
force from 01.01.2008) (1) The aggregate of the annual bases
of ta x atio n
as
p er
A rt.
1 7
fo r
p ers o ns
w hose
cap acity
fo r
w ork
is
re d uced
b y
5 0%
o r
m ore ,
th is
percentage being determined by way of an effective decision of a competent body, shall be decreased by
7920 BGN, this being also applicable to the year in
which the reduced capacity for work occurred and
the year in which the term of validity of the decision thereon expires.
(2) T he
m onth ly
b ase
o f
taxation a s
p er
Art. 4 2,
para 2
regarding income fro m
employment
legal relations of persons whose capacity for work is reduced by 50% or more, shall be decreased by 660
BGN, this being also applicable to the month in
which the reduced capacity for work occurred and the
month in which the term of validity of the decision thereon expires.
Tax Relief for Personal Contributions for Voluntary Insurance
Art. 19. (1) (amend. ?
SG 113/07, in
force from 01.01.2008) The aggregate of the annual bases
of taxation a s
p er
A rt.
1 7
sh all
b e
reduced b y
th e
personal contributions m ad e
d urin g
th e
y ear
fo r
additional voluntary insurance, the total amount of this reduction being up to 10 percent of the aggregate
of the annual bases of taxation under Art. 17, and by the personal contributions made during the year for
voluntary health insurance, and b y
the premiums/contributions under lif e
insurance contracts, the total
amount of this reduction being up to 10 percent of the aggregate of the annual bases of taxation as per
Art. 17.
(2) (amend. ?
SG 113/07, in
force from 01.01.2008) The monthly base o f
taxation a s
per Art.
42, para
2
re g ard in g
in co m e
fro m
em plo ym en t
le g al
re la tio ns
sh all
be
re d uced
by
th e
pers o nal
contributions, made within the month through an employer, for additional voluntary insurance, the total
amount o f
this reduction being up to 10 percent of the monthly base of taxation as per Art. 42, para 2,
and b y
th e
personal contributions, made w ith in
th e
month a t
th e
expense o f
th e
person, fo r
voluntary
health insurance, and b y
the premiums/contributions under lif e
insurance contracts, the total amount of
this reduction being up to 10 percent of the monthly base of taxation as per Art. 42, para 2.
(3) The tax r e lie f
referred to in
paras. 1 and 2 s h all
be enjoyed in
those cases where, according
to the contract concluded with the insurance company, the natural person ?
bearer o f
the obligation to
pay tax is an insured person.
(4) The tax re lie f
referred to in
paras. 1
a n d
2
s h all
also b e
enjoyed in
those cases where, b y
way of
an
ag re em en t
w ith
th e
pers o ns,
th e
in su ra n ce
co m pan y
has
been
ch an ged
an d
th e
fu nds
accumulated until that time have been transferred through a bank.
Tax Relief for Personal Contributions for Insurance Length of Service
Art. 20. (suppl. ?
SG 113/07, in
force from 01.01.2008) The aggregate o f
the annual bases o f
taxation as per Art. 17 s h all
b e
reduced b y
the insurance contributions referred to in
§
9
of the Interim
and Concluding Provisions of the Social Insurance Code, these contributions being made during the year
D W W K H S H U V R Q ? V H [ S H Q V H
Tax Relief Sequence
Art. 21. (amend. ?
SG 113/07, in
force from 01.01.2008) Tax relieves a s
per Art. 18, para 1 ,
Art. 19, para 1 and Art. 20 shall be used in the following sequence:
1. from the aggregate of the annual bases of taxation as per Art. 25, 30, 32, 34 and 36;
2. fro m
th e
a n nual
b asis
o f
taxation under Art. 28, para 1
?
regarding income from business
activities as a sole trader.
Tax Relief for Donations
Art. 22. (1) (amend. ?
SG 113/07, in
force from 01.01.2008) The aggregate of the annual bases
of taxation as per Art. 17 shall be reduced by the donations made during the year:
1. (a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) (a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) up to 5 percent where the donation is in favour of:
Z K H D O W K F D U H H V W D E O L V K P H Q W V U H I H U U H G W R L Q $ U W S D U D L W H P V W R I U R P W K H / D Z R I + H D O W K
b) medical treatment establishments;
c) specialized institutions for the provision of social services under the Law on Social Support,
and th e
Social Support Agency, a n d
th e
Social Support Fund w ith
th e
Minister o f
Labour a n d
Social
Policy;
d) sp ecia liz ed
in stitu tio ns
fo r
ch ild re n
under
th e
Law
on
C hild
Pro te ctio n,
an d
public
establishments fo r
ra is in g
ch ild re n
w ho
are
dep riv ed
of
S D U H Q W ? V
care ,
under
th e
L aw
on
P ublic
Education;
e) public nurseries, kindergartens, schools, higher schools and academies;
f) state-budget enterprises within the meaning of the Accounting Law;
g) religions registered within the country;
h) specialized enterprises or cooperative societies o f
disabilitiyped persons, which are entered
in
th e
Register referred to
in
Art. 2 9
o f
th e
L aw
o n
th e
Integration o f
d is a b ilitiy ped
Persons, a n d
in
favour of the disabilitiyped Persons Agency;
i) the Bulgarian Red Cross;
j) cultural institutions, lib ra ry
c lu bs
a n d
fo r
th e
purpose o f
cultural, educational o r
s c ie n tif ic
exchange under an international treaty, the Republic of Bulgaria being a party thereto;
k) not-for-profit le g al
entities registered in
the Central Register o f
not-for-profit le g al
entities
for the purpose of carrying out activities for the public benefit, with the exception of those organizations
which support culture within the meaning of the Law on Patronage;
l) the Power Efficiency Fund;
m) communes for treatment of drug addicts;
n) (new – SG 106/08, in force from 01.01.2009) the United Nations Children’s Fund (UNICEF).
2. up to 15 percent for donation in favour of culture;
3. (suppl. ?
S G
95/09, in
fo rc e
fro m
01.01.2010) u p
to
5 0
percent where th e
donation is
in
favour o f
th e
“Fund fo r
Treatment o f
Children” Centre, ? $ V V L V W H G
Reproduction ) X Q G ?
Center and/or
? 7 U D Q V S O D Q W D W L R Q ) X Q G ? & H Q W H U
(2) The total amount of the tax relief for donations may not exceed 65 percent of the aggregate
of the annual bases of taxation referred to in para. 1.
(3) In
those cases where the donation is
in
a
non-pecuniary form, the amount thereof s h all
b e
the price o f
acquisition shown in
th e
G R Q D W R U ? V
documents o f
acquisition o f
th e
object o f
donation o n
condition that the acquisition took place within three months prior to the date of donation. Otherwise the
amount of donation shall be the market price as at the date of granting the object of donation.
(4) The date of making the donation shall be the date on which the donee acquires the donation
within the meaning of Art. 11.
(5) (re v oked
?
SG
113/0 7,
in
fo rc e
fro m
01.01.2008; new
?
SG
32/0 9,
in
fo rc e
fro m
01.01.2010) T ax
re lie v es
fo r
d onees
sh all
als o
b e
ap plie d
to
donations m ad e
in
fa v our
o f
persons,
identical or similar to the ones specified in
para 1, established in
another Member State of the European
8 Q L R Q R U D V W D W H ? S D U W W R W K H $ J U H H P H Q W R Q W K H ( X U R S H D Q ( F R Q R P L F $ U H D
Tax Relief for Young Families
Art. 2 2a.
(revoked ?
S G
95/09, in
fo rc e
fro m
01.01.2010; n ew
?
S G
99/09, in
fo rc e
fro m
01.01.2010) Local natural persons may use tax relief for young families by deducing from the amount of
annual tax bases under Art. 1 7
the interest installments made during the y ear
to a
mortgage credit fo r
purchase of housing, where all of the following requirements are met:
1. the mortgage credit contract is signed by a taxable person and/or spouse in civil marriage;
2. the taxable person and/or the spouse have more than 35 years of age at the date of signing the
mortgage credit contract;
3. the mortgaged housing is the only housing of the family during tax year.
(2) When the amount o f
the mortgage credit is
more than BGN 100 000, the tax re lie f
under
Para 1 may be used for interest payments made during the year to the first BGN 100 000 of the capital.
(3) The tax relief shall be used up to the sum of the annual tax bases under Art. 17 and provided
that the taxable person provides a
declaration in
writing from the spouse that w ill
not use the tax r e lie f
for the respective tax year.
(4) T he
circumstances a n d
conditions under P ara
1
?
3
sh all
b e
stated b y
th e
person in
th e
annual tax statement under Art. 50.
Enjoyment of Tax Relief
Art. 23. Tax r e lie f
s h all
be enjoyed on the grounds of f ilin g
the annual tax return referred to in
Art. 50, the following being attached thereto:
1. (amend. ?
S G
95/09, in
force from 01.01.2010) a
copy o f
a
v alid
decision o f
th e
Medical
Expert C om mis sio n
o n
Employment Matters/ M ed ic al
E xpert
C om mis sio n
fo r
C hild re n
/
N atio nal
( [ S H U W & R P P L V V L R Q R Q ( P S O R P H Q W 0 D W W H U V ? I R U W K H W D [ U H O L H I U H I H U U H G W R L Q $ U W
2. copies o f
documents evidencing that th e
contributions h av e
b een
made ?
fo r
th e
ta x
re lie f
referred to in Art. 20;
U H Y R N H G ? 6 * L Q I R U F H I U R P
4. (suppl. ?
SG 32/09, in force from 01.01.2010) copies of documents evidencing that the donee
belongs to those specified in
Art. 22, para 1 and that the object of donation has been received ?
for the
tax relief referred to in Art. 22, para 1;
5. (new – SG 106/08, in
force from 01.01.2009; revoked ?
SG 95/09, i n
force from 01.01.2010;
new ?
S G
99/09, in
fo rc e
fro m
01.01.2010) a
document is su ed
b y
th e
crediting b an k
c ertif y in g
th e
amount o f
th e
interest payments made during th e
y ear
o n
th e
fir s t
BGN 100 000 o f
th e
capital o f
the
P R U W J D J H F U H G L W I R U S X U F K D V H R I K R X V L Q J ? I R U W K H W D [ U H O L H I X Q G H U $ U W D
6. (new ?
SG 32/09, in
force from 01.01.2010) a n
o ffic ia l
legalized document, certifying th e
status of the person receiving the donation, issued or verified b y
a competent authority of the respective
foreign country, along with a translation in
Bulgarian language, carried out b y
a certified translator ?
in
the cases referred to in Art. 22, para 5.
Chapter five.
ANNUAL BASES OF TAXATION
Section I.
Income Originating from Employment Relationships
Taxable Income
Art. 24. (1) The taxable income originating from employment relationships s h all
be the labour
remuneration and a ll
other payments in
cash and/or in
kind made b y
the employer or at the expense of
the employer, with the exception of the income referred to in para. 2.
(2) The taxable income originating from employment relationships shall not include:
1. the amount of:
Z I U H H I R R G D Q G R U I R R G D G G L W L Y H V S U R Y L G H G L Q N L Q G X Q G H U $ U W R I W K H / D E R X U & R G H
b) fre e
detoxifying food a n d
detoxicants provided in
k in d
in
accordance w ith
procedures s e t
forth in other laws;
c) free food provided in
kind to: members of ship crews ?
for the days the ship is
in
operation;
fishermen ?
for the days of f is h in g;
divers ?
for the days of d iv in g;
the personnel on 12 K R X U V ?
duty in
medical treatment establishments; the surgery teams; the first-aid teams; and the blood donation teams;
d) (suppl. –
SG 28/08; amend. ?
SG 35/09, in
force from 12.05.2009; amend. –
SG 16/10, in
force from 26.02.2010) fre e
food provided to m ilita ry
m en
and c iv ilia n
employees in
accordance with
Art. 224, para 1, item 3 and Art. 286, para 1, items 1 and 2 of the Law on Defence and Armed Forces of
the Republic of Bulgaria and the o ffic ia ls
and to the employees according to Art. 74, Para 2, Item 1
of
the Law on State Agency “National Security”;
e) (s u ppl.
–
S G
28/0 8;
am en d.
an d
su ppl.
–
S G
43/0 8;
am en d.
S G
25/0 9,
in
fo rc e
fro m
01.06.2000; amend. ?
SG 35/09, in
force from 12.05.2009; amend. and suppl. – SG 16/10, in
force from
26.02.2010) fo od
allowance m oney
p aid
o n
th e
grounds o f
th e
L aw
o n
C iv il
A via tio n,
th e
L aw
o n
Execution of
P en altie s
an d
Detention, th e
L aw
on
S ta te
A gen cy
“N atio nal
S ecu rity “,
th e
L aw
of
Defence and Armed Forces o f
the Republic O f
Bulgaria and o f
the amounts under Art. 204, para. 1
o f
the Law on the Ministry of the Interior;
f) th e
vouchers fo r
food received in
accordance w ith
th e
procedure se t
fo rth
in
th e
L aw
o n
Corporate Income Taxation;;
2. the value of the special work clothes and the personal means of protection provided in
kind
and in accordance with the conditions and procedure set forth in a statutory instrument;
3. th e
v alu e
o f
th e
work clothes, uniforms a n d
fo rm al
dress clothes provided in
k in d
a n d
in
accordance with the conditions and procedure set forth in a statutory instrument;
4. (amend. and suppl. –
SG 28/08) the chattels and accoutrements provided on the grounds o f
the L aw
o n
th e
M in is tr y
o f
th e
Interior, th e
L aw
o n
Defence a n d
Armed Forces o f
th e
R ep ublic
o f
Bulgaria and the Law on State Agency “National Security”;
5. the amount of:
Z
tr a v ellin g
an d
accommodation allo w an ces
fo r
a
b usin ess
tr ip ,
th e
am ount
th ere o f
b ein g
evidenced by way of documents in accordance with the operative legislation;
b) daily allowances for a business trip, not exceeding the double amount specified in a statutory
instrument;
6. (amend. and suppl. ?
SG 113/07, in
force from 01.01.2008) the additional expenses on food
that a re
p aid
instead o f
d aily
allowances to
th e
employees working in
th e
b us
a n d
ra ilw ay
transport,
dining-cars, tr a v ellin g
post-offices, as
w ell
as
to
tr a v ellin g
se cu rity
guard s,
an d
fo r
oth er
sim ila r
activities in
which the o ffic ia l
duties are performed in
the course o f
travelling to another settlement or
another s ite
?
up to the double s iz e
o f
the minimum amounts o f
the additional expenses specified in
a
statutory instrument;
7. (amend. and suppl. – SG 28/08; amend. ?
SG 35/09, in
force from 12.05.2009; amend. – SG
16/10, in
force from 26.02.2010) th e
compensatory amounts referred to in
Art. 226c, para. 1
a n d
Art.
Z
of the Law of Defence and Armed Forces of the Republic of Bulgaria, under Art. 210 of the Law
on the Ministry of the Interior and under Art. 81 of the Law on State Agency “National Security”;
8. (amend. ?
S G
6 4/0 7;
su ppl.
–
S G
2 8/0 8;
a m en d.
?
S G
35/09, in
fo rc e
fro m
12.05.2009;
amend. ?
SG 95/09, in
force from 01.01.2010) the indemnities referred to in
Art. 200, Art. 216, para. 1,
items 1
a n d
2 ,
paras. 2
a n d
3 ,
Art. 222, paras. 2
and 3 ,
and Art. 226, para. 3
o f
the Labour Code, the
indemnities referred to
in
Arts. 2 27,
2 29
a n d
2 32
o f
th e
L aw
o n
Defence a n d
Armed Forces o f
th e
Republic of Bulgaria, those referred to in
Art. 204, para. 4, and Art. 252 of the Law on the Ministry of
the Interior, under Art. 74, Para 4
and Art. 117 of the Law on State Agency “National Security”, those
referred to in
Art. 225, Art. 277, para. 3 and Art. 354 of the Judiciary Law, and the indemnities referred
to i n
Art. 78, Art. 81″b”, para. 4, Art. 82, para. 5, Art. 85, para. 5, Art. 104, paras. 3 and 4, and Art. 106,
para. 3 of the Civil Servant Law;
9. th ose
so cia l
ex pen se s
at
th e
acco unt
o f
th e
em plo yer
w hic h
are
su bje ct
to
ta x atio n
in
accordance w ith
th e
procedure se t
forth in
th e
L aw
o n
Corporate Income Taxation, a s
w ell
a s
those
expenses on transport from the H P S O R H H ? V
residential address to the place of work at the account of the
employer which are not subject to taxation under the Law on Corporate Income Taxation;
10. the one-off aid for medical treatment provided b y
the employer at the expense of the social
H [ S H Q V H V ? X S W R W K H D P R X Q W G X H I R U W K H P H G L F D O W U H D W P H Q W
11. (amend. ?
SG 113/07, in
force from 01.01.2008) the amount of the one-off aid provided b y
the employer at the account of the social expenses in the following cases: delivery of a child, conclusion
R I D F L Y L O P D U U L D J H G H D W K R I D P H P E H U R I W K H I D P L O ? X S W R % * 1 L Q W R W D O
12. (amend. ?
SG 113/07, in
force from 01.01.2008) the social expenses made b y
the employer
up to BGN 6 0
per month per each insured person fo r
contributions/premiums fo r
additional voluntary
insurance, volu nta ry
health
in su ra n ce
an d/o r
lif e
in su ra n ce
re p orte d
by
th e
esta b lis h m en ts
an d
commercial representative offices, regardless to whether the latter carry out business activities or not;
13. the expenses the employer has made for the insurance that a statutory instrument has set out
as being mandatory insurance;
14. (amend. ?
SG 113/07, in force from 01.01.2008) the indemnities and aids under Part One of
the Social Insurance Code, including the ones, paid on the grounds of Art. 40, para 4 of the same Code;
15. the pecuniary and non-pecuniary awards granted on the grounds and i n
accordance with the
procedure set forth in a statutory instrument;
16. (suppl. –
SG 28/08; amend. ?
SG 35/09, in
force from 12.05.2009; amend. –
SG 16/10, in
force from 26.02.2010) the cash reserves referred to in
Art. 226h and 298a of the Law on Defence and
Armed Forces o f
th e
Republic o f
Bulgaria, under Art. 204, para. 5
o f
th e
Law o n
the Ministry o f
the
Interior and under Art. 76, Para 1 of the Law on State Agency “National Security”.
Annual Basis of Taxation
Art. 25. (1) (suppl. ?
SG 113/07, in
force from 01.01.2008; prev. Art. 25 –
SG 95/09, in
force
from 01.01.2010) A s
fa r
a s
th e
employment relationships a re
concerned, th e
a n nual
b asis
o f
taxation
shall be determined as follows: the taxable income referred to in
Art. 24 received b y
the taxable person
during the year o f
taxation s h all
b e
reduced b y
the mandatory insurance contributions withheld b y
the
employer a t
th e
expense o f
th e
natural person, in
accordance w ith
th e
Social Insurance Code a n d
th e
Health Insurance Law, as well as by the mandatory insurance contributions, deposited abroad, which are
at the expense of the natural person.
(2) (new ?
SG 95/09, in
force from 01.01.2010) The annual b asis
o f
taxation under par. 1
o f
self-employed persons h av in g
received income under employment contracts a s
p er
§
1 ,
ite m
26, ite m
? L ?
o f
th e
Supplementary provisions, s h all
b e
reduced a ls o
b y
th e
insurance contributions, w hic h
th e
self-employed pers o n
is
oblig ed
to
m ak e
in
th e
ta x atio n
year
at
his /h er
ex pen se
purs u an t
to
th e
provisions of the Code of Social Insurance and the Law for the Health Insurance.
(3) (new ?
S G
95/09, in
force from 01.01.2010) T he
a n nual
b asis
o f
taxation o f
th e
income,
received by a marine person, shall be 10 per cent of the annual basis of taxation determined under par. 1.
Section II.
Income Originating from Business Activities as a Sole Proprietor
Taxable Income
Art. 26. (1) The taxable income originating from business activities as a sole proprietor shall be
the p ro fit
determined in
accordance w ith
th e
procedure se t
fo rth
in
th e
L aw
o n
Corporate In co m e
Taxation, the said profit including the f in an cia l
result from the transfer of the establishment of the sole
proprietor without his/her being removed from the Commercial Register.
(2) The taxable income referred to in
para. 1
s h all
not include the accounting fin an cia l
result
originating from the following activities:
1. those a ctiv itie s
w hic h
a re
subject to
alternative taxes la id
down in
th e
L aw
o n
Corporate
Income Taxation;
2. (amend. ?
SG 113/07, in force from 01.01.2008) those activities which are subject to a patent
tax pursuant to the Law for Local Taxes and Fees;
U H Y R N H G ? 6 * L Q I R U F H I U R P
(3) In
determining th e
profit, th e
s o le
proprietors s h all
a p ply
th e
provisions o f
th e
system o f
carrying forward of the tax loss in accordance with the Law on Corporate Income Taxation.
(4) For the purposes of determining the taxable income referred to in
para. 2, the portion of the
non-distributable income/expenses corresponding to the activities under para. 2
s h all
b e
determined b y
way of
m ultip ly in g
th e
to ta l
am ount
of
th e
non-distributable income/expenses by
th e
ra tio
o f
n et
revenues from sales concerning the activities referred to in para. 2 to the total net revenues from sales.
(5) Those sole proprietors that carry out activities which are subject to an alternative tax within
the meaning of the Law on Corporate Income Taxation s h all
be subject to taxation under the conditions
and in accordance with the procedure set forth in the said Law.
(6) (new –
SG 106/08, in
force from 01.01.2009) The taxable profit under Para 1 s h all
include
also the excess above the double amount specified in
a
normative act o f
the business trip funds o f
the
owner of the undertaking or the sole entrepreneur.
(7) (prev. text o f
Para 06, amend. –
SG 106/08, in
force from 01.01.2009) The procedure set
forth in
paras. 1
through 6
s h all
a ls o
a p ply
to
th e
income originating fro m
th e
business a ctiv ity
o f
a
natural person who i s
a trader within the meaning of the Commercial Law, without being registered as a
sole proprietor.
Using the Personal Property of the Natural Person in His/Her Activities as a Sole
Proprietor
Art. 2 7.
(1 )
T he
natural person who is
th e
owner o f
th e
establishment o f
th e
s o le
proprietor
shall b e
en title d
to
in clu de
in
th e
so le
S U R S U L H W R U ? V
property an y
ite m s
o f
m ovab le
an d
im movab le
property providing that they:
1. are not placed under a regime of joint ownership, or
2. form part of matrimonial tenancy by the entirety.
(2) The items of movable and immovable property referred to in
para. 1 s h all
be entered in
the
accounting of
th e
so le
proprietor at
th eir
acq uis itio n
pric e,
th e
la tte r
bein g
ev id en ced
by
w ay
of
documents.
(3) In the cases referred to in
para. 1 the natural person who is
the owner of the establishment
of th e
so le
proprietor sh all
draw u p
a
record showing th e
ty pe
o f
th e
ite m
o f
property a n d
th e
p ric e
referred to in para. 2.
(4) In the cases referred to in
para. 1, item 2 the other spouse s h all
state b y
way of a notarized
G H F O D U D W L R Q K L V K H U F R Q V H Q W I R U W K H V D L G L W H P ? V E H L Q J L Q F O X G H G L Q W K H S U R S H U W R I W K H V R O H S U R S U L H W R U
(5) in
those cases where, subsequently, the item referred to in
para. 1
happens to b e
excluded
from the property of the sole proprietor and is transferred to the natural person-owner, for tax purposes it
shall be considered that the natural person-owner of the sole proprietor sells the said item of property at
its market p ric e,
regardless o f
th e
circumstances referred to
in
A rt.
1 3.
T he
ta x ab le
in co m e
sh all
b e
determined as the difference between:
1. th e
market p ric e
a n d
th e
taxable v alu e
?
fo r
taxable amortizable assets under th e
L aw
o n
Corporate Income Taxation;
2. the market price a n d
the acquisition price evidenced b y
w ay
o f
documents ?
fo r
a n y
other
item of property.
(6) T hose
temporary ta x
d if fe re n ces
w ith in
th e
m ean in g
o f
th e
L aw
o n
Corporate In co m e
Taxation which are connected with an item of property referred to in
para. 1 s h all
not be recognized for
tax purposes at the time of the sale under para. 5, neither shall they be recognized during the subsequent
years.
(7) The market price referred to in
para. 5 s h all
be regarded as an acquisition price in
the cases
of a
subsequent s a le
or exchange o f
the ite m
o f
property o n
the part o f
the natural person-owner, th is
being also valid in the cases of a subsequent application of para. 2.
Annual Basis of Taxation
Art. 2 8.
(amend. ?
S G
113/07, in
fo rc e
fro m
01.01.2008) (1 )
T he
a n nual
b asis
o f
taxation
regarding b usin ess
activ itie s
as
a
so le
trader sh all
b e
determined b y
decreasing th e
ta x ab le
in co m e
referred to
in
A rt.
2 6
fo r
th e
y ear
o f
taxation b y
th e
contributions d ue
b y
th e
self-insured person a t
his/her expense for the year of taxation b y
virtue of the Social Insurance Code and the Health Insurance
Law a n d
b y
the mandatory insurance contributions, deposited abroad, which are a t
the expense o f
the
natural person.
(2) The annual basis of taxation under para 1 shall be reduced by:
1. personal contributions for additional voluntary insurance made during the year amounting up
to 10
perc en t
in
to ta l
of
th e
an nual
basis
of
ta x atio n
under
para
1,
as
w ell
as
by
th e
pers o nal
contributions for voluntary health insurance made during the year and premiums/installments under lif e
assurance contracts amounting up to 10 percent in total of the annual basis of taxation under para 1;
2. the difference between BGN 7920 and the amount o f
the r e lie f
used a s
per Art. 18, para 1,
including the year during which the educed capacity for work h as
occurred and the year during which
the term o f
th e
decision h as
expired –
w ith
regards to persons whose capacity fo r
work is
reduced b y
50% or more, this percentage being determined by way of an effective decision of a competent body;
3. th e
d if fe re n ce
between th e
in su ra n ce
contributions referred to
in
§
9
o f
th e
In te rim
a n d
Concluding Provisions of the Social Insurance Code and the amount of the relief used as per Art. 20.
Section III.
Income Originating from Other Business Activities
Taxable Income
Art. 29. (amend. ?
SG 113/07, in
force from 01.01.2008) The taxable income originating from
business activities o f
those natural persons who are not traders within the meaning o f
the Commercial
Law s h all
b e
determined b y
w ay
o f
subtracting th e
operating expenses from th e
income received, th e
operating expenses being as follows:
1. (new ?
SG 95/09, in
force from 01.01.2010) b y
60 per cent for income from the activity of
natural pers o ns,
re g is te re d
as
to bacco
producers an d
ag ric u ltu ra l
producers, fo r
th e
production of
non-processed agricultural products, except for the income from production of decorative plants;
2. (prev. item 1 – SG 95/09, in force from 01.01.2010) by 40% for :
a) (a m en d.
–
S G
9 5/0 9,
in
fo rc e
fro m
01.01.2010) in co m e
o rig in atin g
fro m
th e
activ ity
o f
natural persons for production of processed or unprocessed agricultural products (including from sale of
manufactured decorative vegetation), fro m
forestry industry (in clu din g
fro m
p ic k in g
m ed ic in al
herbs,
mushrooms and fruits), from game husbandry and fish industry;
b) D X W K R U ? V
an d
lic en ce
remuneration, in clu din g
th e
in co m e
orig in atin g
fro m
th e
sa le
of
inventions, works o f
science, culture a n d
art, providing that th e
s a id
s a le
h as
b een
carried out b y
th e
authors thereof, as well as income originating from the performance of actors-performers;
c) income originating from craftsmanship which is
subject to a
patent tax pursuant to the Law
for Local Taxes and Fees;
3. (prev. item 2 – SG 95/09, i n
force from 01.01.2010) by 25 % for the income originating from
working as a freelance practitioner and for the income originating from legal relationships other than the
employment ones.
Annual Basis of Taxation
Art. 3 0.
(a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) T he
an nual
b asis
o f
ta x atio n
is
determined a s
follows: the taxable income referred to in
Art. 29 that was received in
the course o f
the
year of taxation is
decreased b y
the amount of those contributions due b y
the self-insured person during
the y ear
at
h is /h er
o w n
ex pen se ,
an d
if
th e
p ers o n
is
n ot
a
se lf -in su re d
o ne
th e
ta x ab le
in co m e
is
decreased by
th ose
m an dato ry
in su ra n ce
co ntr ib utio ns
w hic h
w ere
m ad e
at
his /h er
ex pen se
in
accordance with the procedure set forth in
the Social Insurance Code and the Health Insurance Law, as
well as b y
mandatory insurance contributions, deposited abroad, which are at the expense of the natural
person.
Section IV.
Income Originating from Rent or Any Other Granting of the Use of Rights or Property for
Consideration
Taxable Income
Art. 31. (1) (amend. ?
SG 113/07, in
force from 01.01.2008) The taxable income originating
from rent or any other granting of the use of movable or immovable property for consideration s h all
be
determined by way of decreasing the income received by the expenses amounting to 10 percent.
(2) T he
instalments received under a
le ase
contract w hic h
does not e x plic itly
provide fo r
th e
transfer of ownership of the property shall be regarded as income originating from rent under para. 1.
(3) T he
ta x ab le
in co m e
o rig in atin g
fro m
th e
remuneration u nder
fra n ch is in g
contracts an d
factoring contracts, as well as under other contracts concerning the granting of enjoyment of rights, shall
be determined in accordance with the procedure set forth in para. 1.
Annual Basis of Taxation
Art. 32. The annual basis of taxation for local natural S H U V R Q V ?
income originating from rent or
any other granting of the use of rights or property s h all
be determined b y
way of decreasing the taxable
income referred to
in
A rt.
3 1,
th e
sa id
in co m e
b ein g
re ceiv ed
d urin g
th e
y ear
o f
taxation, b y
those
contributions which the person was obligated to make during the year of taxation at his/her own expense
in accordance with the procedure set forth in the Health Insurance Law.
Section V.
Income Originating from the Transfer of Rights or Property
Taxable Income
Art. 3 3.
(1 )
T he
taxable income originating from a
s a le
o r
exchange o f
immovable property,
including lim ite d
property rig hts
o n
su ch
property, sh all
b e
d ete rm in ed
b y
w ay
o f
d ecre asin g
th e
positive d if fe re n ce
between th e
sa le
p ric e
a n d
th e
acquisition p ric e
o f
th e
property b y
th e
expenses
amounting to 10 percent.
(2) T he
ta x ab le
in co m e
sh all
be
th e
positiv e
dif fe re n ce
betw een
th e
sa le
pric e
an d
th e
acquisition price in the cases of sale or exchange of:
1. road, air and water means of transport;
2. works of art, objects for collections and antiquities.
(3) The taxable income originating from the s a le
or exchange o f
stocks, shares, compensatory
instruments, investment bonds and other financial assets, as well as the income originating from trade in
foreign currency shall be equal to the aggregate of the profit realized during the year under each specific
transaction decre ase d
by
th e
am ount
of
th e
lo sse s
re aliz ed
durin g
th e
year
under
each
sp ecif ic
transaction.
(4) T he
re aliz ed
pro fit/lo ss
re fe rre d
to
in
para .
3
fo r
each
sp ecif ic
tr a n sa ctio n
sh all
be
determined b y
way o f
decreasing the s a le
price b y
the acquisition price o f
the f in an cia l
asset. I n
those
cases where the fin an cia l
assets o f
the same type issued b y
the same person have different acquisition
prices, an d
la te r
o n
a
p art
th ere o f
is
so ld ,
an d
it
can not
b e
p ro ved
w hic h
p art
h as
b een
so ld ,
th e
acquisition price of each of those assets s h all
be the average weighted price determined on the grounds
of the acquisition price of those f in an cia l
assets of the same type and issued b y
the same issuer that are
held as at the date of the sale.
(5) T he
sa le
p ric e
sh all
comprise everything acquired b y
th e
person in
connection w ith
th e
sale/exchange, including any remuneration in a non-pecuniary form.
(6) The price of acquisition referred to in paras. 1, 2 and 4 shall be as follows:
1. the acquisition price of the property evidenced by way of documents;
2. th e
acq uis itio n
p ric e
o f
th e
property ev id en ced
b y
w ay
o f
documents in cre ase d
b y
an y
additional payment due b y
the natural person, the s a id
additional payment b ein g
evidenced b y
w ay
o f
G R F X P H Q W V ? L Q W K R V H F D V H V L Q Z K L F K W K H H [ F K D Q J H L V D F F R P S D Q L H G E D Q D G G L W L R Q D O S D P H Q W
3. (suppl. ?
SG 113/07, in
force from 01.01.2008) zero ?
in
those cases where no acquisition
price o f
th e
property h as
b een
e v id en ced
b y
w ay
o f
documents, in clu din g
th e
property acquired a s
donation, o r
stocks a n d
shares acquired in
th e
course o f
distribution o f
profit o r
a n y
other source o f
equity; The acquisition price under para 1
s h all
also b e
zero in
case o f
subsequent s a le
or exchange o f
the real estate as per item 8, including limited property rights on such property;
4. additional payment due b y
a natural person, the said additional payment being evidenced b y
way of documents ?
in those cases of exchange with additional payment in which no acquisition price of
the property has been evidenced by way of documents;
5. (suppl. SG 95/09, in
force from 01.01.2010) th e
portion o f
th e
non-pecuniary contribution
entered in
th e
D eed
o f
Incorporation, o r
th e
Art.s o f
Association, o r
th e
Statutes o f
th e
commercial
company which corresponds to the stocks and shares that have been sold or exchanged ?
in
those cases
where non-p ecu nia ry
co ntr ib utio ns
hav e
been
m ad e
in
th e
co m merc ia l
co m pan y,
where
th e
F R Q W U L E X W L R Q ? V
su bje ct
is
property, th e
in co m e
fro m
th e
sa le
o r
ex ch an ge
o f
w hic h
are
non-taxable
pursuant to Art. 13, par. 1 as of the date of entering of the contribution into the trade register;
6. the market price referred to in
Art. 10, para. 4
o f
the property acquired in
the course o f
a n
H [ F K D Q J H ? L Q W K H F D V H V R I V D O H H [ F K D Q J H R I S U R S H U W D F T X L U H G E Z D R I H [ F K D Q J H
7. the acquisition price of the property evidenced b y
way of documents, updated as at the year
1997 o n
th e
grounds o f
th e
common in dex
o f
consumer p ric es
announced b y
th e
National Statistical
, Q V W L W X W H ? L Q W K H F D V H V R I V D O H R U H [ F K D Q J H R I S U R S H U W D F T X L U H G S U L R U W R - D Q X D U
8. (new ?
SG 113/07, in
force from 01.01.2008) the acquisition price of the property evidenced
by w ay
o f
documents, corresponding to th e
part w ith
regards to w hic h
right o f
construction h as
b een
H V W D E O L V K H G ? L Q W K R V H F D V H V Z K H U H U L J K W R I F R Q V W U X F W L R Q K D V E H H Q H V W D E O L V K H G
9. (new – SG 95/09, in
force from 01.01.2010) the price of acquisition of the property ?
subject
to non-monetary contribution in
th e
tr a d e
company, ev id en ced
b y
documents ?
in
case s
o f
sa le
o r
exchange o f
shares and stock, obtained against non-monetary contributions in
a
trade company, except
for the cases under item 5.
(7) In
those cases where th e
s a le
price referred to in
para. 1
is
p aid
in
parts in
th e
course o f
several years of taxation, the taxable income per each of the said years of taxation shall be determined in
accordance with the following formula:
PRP
TITY = [(SP – AP) – 0,10 x (SP – AP)] x ——–
SP
where:
TITY is the taxable income for the specific year of taxation;
SP is the sale price;
AP is the price of acquisition;
PRP is the partially received payment during the year of taxation.
(8) In
those cases where th e
s a le
price referred to in
para. 2
is
p aid
in
parts in
th e
course o f
several years of taxation, the taxable income per each of the said years of taxation shall be determined in
accordance with the following formula:
PRP
TITY = (SP – AP)] x ——–
SP
where:
TITY is the taxable income for the specific year of taxation;
SP is the sale price;
AP is the price of acquisition;
PRP is the partially received payment during the year of taxation.
(9) T he
in co m e
received in
connection w ith
th e
granting o f
property under a
le ase
contract
which ex plic itly
pro vid es
fo r
a
tr a n sfe r
of
th e
ow ners h ip
of
property sh all
be
su bje ct
to
ta x atio n
regardless o f
th e
circumstances re fe rre d
to
in
A rt.
1 3.
T he
ta x ab le
in co m e
sh all
b e
determined in
accordance with the following formula:
CR
TITY = [(CP – AP) – 0,10 x (CR – AP)] x ——–
CP
where:
TITY is the taxable income for the specific year of taxation;
CP is the contract price of the property;
AP is the price of acquisition;
CR is
th e
contributions received in
th e
course o f
th e
y ear
o f
taxation excluding th e
interest
contained therein.
(10) (n ew
?
S G
113/0 7,
in
fo rc e
fro m
01.01.2008) A t
te rm in atio n
of
a
le asin g
contract,
explicitly providing that the transfer of right of ownership of the property shall be carried out before the
F R Q W U D F W ? V
term expires and that the ownership o f
the movable or immovable property ?
subject o f
the
contract, the non-refundable leasing installments s h all
be considered as income from property, acquired
by the moment of termination. The taxable income, determined pursuant to Art. 31, s h all
be reduced b y
the taxable income calculated according to the formula of para 9, provided that i n
this case “PRP” i s
the
sum o f
th e
non-refundable installments under th e
le asin g
contract, received during previous y ears
o f
taxation.
(11) (prev. text of para 10 ?
SG 113/07, in
force from 01.01.2008) In the cases of transfer of a
sole S U R S U L H W R U ? V
establishment accompanied b y
a
removal o f
the sole proprietor from the Register, the
taxable income s h all
be the positive difference between the sale price agreed under the contract and the
equity of the establishment.
Annual Basis of Taxation
Art. 3 4.
T he
an nual
b asis
o f
ta x atio n
o f
in co m e
o rig in atin g
fro m
th e
tr a n sfe r
o f
rig hts
o r
property shall be the taxable income referred to in Art. 33 that was received during the year.
Section VI.
Income Originating from Other Sources
Taxable Income
Art. 35. The taxable income s h all
b e
the gross amount o f
the taxable income received during
the year of taxation originating from:
1. compensation for loss of profit and indemnities of that nature;
2. p ecu nia ry
a n d
non-pecuniary awards in
g am es
a n d
competitions, th ese
awards n ot
b ein g
provided by an employer or an assignor;
3. interest, including the interest contained in lease instalments;
4. production dividends from cooperative societies;
5. the exercise of intellectual property rights as a legal successor;
6. a n y
other sources that have not been e x plic itly
specified in
th is
Law and are not subject to
fin al
ta x es
u nder
th is
L aw
o r
to
fin al
ta x es
u nder
th e
procedure se t
fo rth
in
th e
L aw
o n
Corporate
Income Taxation.
Annual Basis of Taxation
Art. 3 6.
T he
a n nual
b asis
o f
taxation o f
th e
in co m e
originating fro m
other sources sh all
b e
determined b y
decreasing the taxable income referred to in
Art. 35 received during the year of taxation
by the contributions due b y
the person at his/her own expense during the year of taxation in
accordance
with the procedure set forth in the Health Insurance Law.
Part three.
FINAL TAXES
Chapter six.
FINAL TAX ON INCOME ORIGINATING FROM A SOURCE IN BULGARIA OR ABROAD
Taxation of the Income of Foreign Persons
Art. 3 7.
(1 )
(suppl. ?
S G
113/07, in
force fro m
01.01.2008) Regardless o f
th e
circumstances
referred to
in
Art. 1 3,
th e
following income originating fro m
a
source in
Bulgaria that is
due/paid in
favour of a foreign natural person, in case it has not been realised by a base, calculated in the state, shall
be subject to a final tax:
1. compensation for loss of profit and indemnities of that nature;
2. scholarships awarded for training within the country and abroad;
3. interest, including the interest contained in lease instalments;
4. the income originating from rent or a n y
other granting of the use of movable or immovable
property, in clu din g
th e
instalments u nder
a
le ase
contract w hic h
d oes
n ot
e x plic itly
provide fo r
th e
transfer of the ownership of property;
5. remuneration under franchising contracts and factoring contracts;
D X W K R U ? V D Q G O L F H Q F H U H P X Q H U D W L R Q
7. remuneration for technical services;
8. (a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) aw ard s
an d
remuneration fo r
activ ity
carried o ut
in sid e
th e
territory o f
th e
country b y
fo re ig n
n atu ra l
persons ?
p ublic
fig ure s,
sc ie n tif ic
workers, eminent figures in
arts, culture and sport, including those cases in
which the income has been
due or
paid
th ro ugh
a
th ir d
pers o n,
su ch
as
an
im pre sa rio
ag en cy ,
S U R G X F H U ? V
fir m
or
an oth er
intermediary;
9. in co m e
orig in atin g
fro m
m an ag em en t
an d
su perv is io n
of
esta b lis h m en ts ,
an d
fro m
th e
participation in management and supervisory bodies of establishments;
10. in co m e
originating fro m
sa le ,
exchange o r
a n y
other transfer o f
immovable property fo r
consideration;
11. (suppl. ?
S G
113/07, in
force from 01.01.2008) instalments under a
le ase
contract w hic h
explicitly provides for the transfer of ownership and real estate;
12. in co m e
originating fro m
th e
sa le
o r
exchange o r
a n y
other transfer fo r
consideration o f
stocks, sh are s,
co m pen sa to ry
in str u m en ts ,
in vestm en t
bonds
an d
oth er
fin an cia l
asse ts ,
w ith
th e
exception of the income originating from the exchange referred to in Art. 38, para. 5.
(2) (amend. ?
SG 113/07, in
force from 01.01.2008) The f in al
tax on the income referred to in
para. 1 ,
ite m s
1
through 9
sh all
b e
determined o n
th e
grounds o f
th e
gross amount o f
th e
due/paid
income.
(3) (new ?
SG 113/07, in
force from 01.01.2008) Final tax on the income referred to i n
para. 1,
items 10 and 11 shall be determined on the grounds of the positive difference between the sale price and
the acquisition price of the property, evidenced by documents, reduced by 10 percent costs.
(4) (new ?
SG 113/07, in
force from 01.01.2008) Final tax on the income referred to i n
para. 1,
item 1 2
s h all
b e
determined o n
th e
grounds o f
th e
positive difference between th e
s a le
p ric e
a n d
th e
acquisition price of the property, evidenced by documents.
(5) (new ?
SG 113/07, i n
force from 01.01.2008) In case part of the sale price has been paid, at
calculation o f
th e
fin al
ta x
o n
sa le
p ric e
a n d
p ric e
evidenced b y
w ay
o f
documents o f
th e
property
acquisition as per para 3 and 4 shall be accepted the received part of the sale price and the corresponding
part of the acquisition price evidenced by way of documents.
(6) (new ?
SG 113/07, in force from 01.01.2008) At termination of a leasing contract, explicitly
providing that the transfer of right of ownership of the property shall be carried out before the F R Q W U D F W ? V
term expires and that the ownership of the movable or immovable property ?
subject to the contract, the
non-refundable le asin g
in sta llm en ts
sh all
be
co nsid ere d
as
in co m e
fro m
property, acq uir e d
by
th e
foreign natural person by moment of termination. The f in al
tax deposited under para 1, item 3 and 11 by
the moment of termination of the leasing contract shall be reduced by the f in al
tax due according para 1,
item 4.
(7) (prev. text of para 3
?
SG 113/07, in
force from 01.01.2008; amend. –
SG 106/08, in
force
from 01.01.2009) N o
fin al
ta x
sh all
b e
d ue
o n
th e
in co m e
referred to
in
para. 1
providing th at
it
is
exempt fro m
ta x atio n
u nder
A rt.
1 3
an d
is
d ue/p aid
in
fa v our
o f
fo re ig n
n atu ra l
p ers o ns
th at
are
established fo r
ta x
purposes in
a
M em ber
S ta te
o f
th e
European U nio n,
o r
a
M em ber
State o f
th e
European Economic Area.
(8) (prev. text of para 4
?
SG 113/07, in
force from 01.01.2008; amend. –
SG 106/08, in
force
from 01.01.2009) The circumstances referred to i n
para. 7 shall be evidenced to the payer of the income
by way of a document issued b y
the tax administration of the State i n
which the person i s
settled for tax
purposes a n d
a
declaration o f
th e
re cip ie n t
o f
th e
in co m e
sta tin g
th e
presence o f
th e
circumstances
referred to in Art. 13.
Re-calculation of the final tax under Art. 37
Art. 37a. (new –
SG 95/09, in
force from 01.01.2010) (1) A
foreign natural person, which is
a
local person for tax purposes of an European Union Member State or of another country ?
a party under
the European Economic Area Agreement, s h all
have the right to choose to recalculate the fin al
tax on
the income under Art. 37. Where the foreign person chooses to recalculate the final tax, the recalculation
shall be done for a ll
received b y
the person income within the year, subject to taxation b y
the f in al
tax
under Art. 37.
(2) Where the foreign person chooses to recalculate the f in al
tax on the income under Art. 37,
the recalculated ta x
s h all
b e
equal to th e
ta x
o n
th e
total annual b asis
o f
taxation or to th e
ta x
o n
th e
annual basis of taxation under Art. 28, which would be payable for this income, provided that they have
been received b y
a
local natural person. Where the foreign person has incurred expenses related to the
income referred to in
the f ir s t
sentence, for which a
tax would b e
payable on the expenses pursuant to
the provisions of the Law for the corporate income tax, provided that they have been incurred by a local
natural person, the amount of the recalculated tax shall be increased by this tax.
(3) W here
th e
amount o f
th e
deposited fin al
ta x
o n
th e
in co m e
u nder
A rt.
3 7
e x ceed s
th e
amount of the recalculated tax under par. 2 for the same income, the difference shall be subject to refund
to the amount of the f in al
tax under Art. 37, which the foreign person may not deduct from the due tax
on this income in the country, in which the person is deemed local for tax purposes.
(4) The choice o f
recalculating o f
the f in al
tax under Art. 37 s h all
b e
exercised b y
submitting
the a n nual
ta x
re tu rn
u nder
A rt.
5 0.
T he
ta x
re tu rn
sh all
in clu de
a ls o
a ll
o th er
proceeds su bje ct
to
declaration by the foreign natural person.
(5) The refund o f
the tax under par. 3
s h all
b e
dome following the provisions o f
the Code o f
Tax Insurance Procedure.
(6) Paragraphs 1 ?
5 s h all
not apply in
the cases, where the foreign person is
a local person for
tax purposes o f
a
country ?
a
party under th e
European Economic A re a
Agreement, w hic h
is
n ot
a n
European Union Member State, with which the republic of Bulgaria:
1. does not have an enforced agreement for avoidance of double taxation, or
2. has got a n
enforced agreement for avoidance of double taxation, where the following is
not
provided:
a) information exchange, or
b) cooperation in collection of taxes.
Income of Local and Foreign Natural Persons
Art. 3 8.
(1 )
A
fin al
ta x
sh all
b e
d ue
o n
th e
ta x ab le
in co m e
fro m
d iv id en ds
a n d
liq uid atio n
shares in favour of:
1. a local or foreign natural person where the income originates from a source in Bulgaria;
2. a local natural person where the income originates from a source abroad.
(2) The fin al
tax o n
the income from dividends s h all
b e
determined o n
the gross amount, the
latter being the amount shown in the dividend distribution decision.
(3) The f in al
tax on the income from dividends in
the form o f
concealed distribution o f
profit
shall be determined on the gross amount of the expenses that have been charged.
(4) T he
fin al
ta x
o n
th e
in co m e
fro m
liquidation sh are s
sh all
b e
determined o n
th e
positive
difference betw een
th e
valu e
of
th e
liq uid atio n
sh are
an d
th e
acq uis itio n
pric e
in
th e
company/cooperative society, the said price being evidenced by way of a document.
(5) (amend. ?
S G
113/07, in
force fro m
01.01.2008) A
fin al
ta x
s h all
b e
d ue
o n
th e
taxable
income originating fro m
th e
exchange o f
stocks a n d
shares in
connection w ith
th e
transformation o f
companies as per Chapter nineteen, section II of the Law on Corporate Income Taxation:
1. b y
lo cal
natural persons in
th e
cases o f
exchanging stocks a n d
shares in
lo cal
commercial
companies fo r
stocks a n d
sh are s
e ith er
in
lo cal
commercial companies o r
in
commercial companies
abroad;
2. by
lo cal
natu ra l
pers o ns
in
th e
case s
of
ex ch an gin g
sto ck s
an d
sh are s
in
co m merc ia l
companies abroad for stocks and shares either in
commercial companies abroad or in
local commercial
companies;
3. b y
foreign natural persons in
the cases of exchanging stocks and shares in
local commercial
companies fo r
stocks a n d
sh are s
e ith er
in
lo cal
commercial companies o r
in
commercial companies
abroad.
(6) The taxable income referred to i n
para. 5 shall be determined as at the time of the exchange
and s h all
b e
equal to the positive difference between the market price o f
the shares/stocks acquired in
the exchange a n d
the acquisition price under Art. 33, para. 6
o f
the stocks and shares in
the company
under transformation.
(7) The market price referred to in
para. 6 s h all
be regarded as the acquisition price under Art.
33, p ara .
6
in
th e
c ase s
o f
a
subsequent sa le
o r
exchange o f
th e
stocks a n d
sh are s
in
th e
re cip ie n t
company/the newly established company, as well as in the cases of a subsequent application of para. 6.
(8) A
fin al
ta x
sh all
b e
d ue
o n
th e
g ro ss
am ount
o f
th e
ta x ab le
in co m e
o rig in atin g
fro m
additional voluntary insurance, voluntary h ealth
in su ra n ce
a n d
lif e
insurance, th e
sa id
in co m e
b ein g
received on the date of:
1. reverse receipt of the amounts paid for life insurance;
2. reverse receipt of the amounts paid for voluntary health insurance, with the exception of the
cases of recovery of the expenses made for medical treatment and provision of health services and goods
to the insured person upon the occurrence of the events provided for in the health insurance contract;
3. receipt of the amounts paid for additional voluntary insurance prior to the acquisition of the
right to additional pension;
4. transfer of amounts from the individual account to the account of a third person;
5. a change i n
an insurance contract turning it from a contract for which the relief referred to i n
Art. 19 was used into a contract for which it is impossible to use the said relief;
6. using the amount under an insurance contract for the extinguishment of a loan in
those cases
in which life insurance is used for securing a liability of a natural person.
(9) N o
fin al
ta x
sh all
b e
d ue
o n
th e
in co m e
referred to
in
para. 8
w hic h
corresponds to
th e
portion of instalments/premiums for which no tax relief referred to in Art. 19 has been used.
(10) A f in al
tax s h all
be due on the gross amount of a S H U V R Q ? V
income originating from sale or
exchange of movable property referred to in Art. 13, para. 1, item 2, point “d”.
Chapter seven.
TRANSITION FROM PATENT TAXATION TO TAXATION ACCORDING TO THE
* ( 1 ( 5 $ / / < ( 6 7 $ % / , 6 + ( ' 3 5 2 & ( ' 8 5 ( 7 L W O H D P H Q G ? 6 * L Q I R U F H I U R P
01.01.2008)
Taxation of Income from Patent Activity According to the Generally Established
Procedure
Art. 39. (amend. ?
SG 113/07, in force from 01.01.2008) (1) In the event that within the current
year of taxation the grounds for application of patent tax pursuant to the Law for Local Taxes and Fees
drop out, the income of natural persons, including sole proprietors, for the current year of taxation s h all
be subject to taxation according to the generally established procedure.
(2) In the cases referred to in
para 1 those natural persons, including sole proprietors, s h all
not
be liable for advance payments for the current year within the meaning of this Law.
(3) In those cases where within the current year of taxation the person gets deregistered under
the Law on Value Added Tax, he/she shall be l ia b le
for tax in accordance with the general procedure set
forth in this Law for the whole year of taxation.
Patent Tax Deduction
Art. 40. (amend. ?
SG 113/07, in
force from 01.01.2008) (1) I n
those cases referred to in
Art.
39, para 1 from the tax on the total annual basis of taxation for the income from business activities as a
sole proprietor shall be deducted:
1. the patent tax due according to the Law for Local Taxes and Fees;
2. the paid patent tax, where b y
the date of submitting declaration that the grounds for taxation
have dropped out, the person has deposited a
patent tax for the current year o f
taxation, the amount o f
which exceeds the amount of the tax due.
(2) T he
amount o f
th e
patent ta x
u nder
p ara
1
sh all
b e
c ertif ie d
b y
attaching th e
fo llo w in g
documents to the annual tax return referred to in Art. 50:
1. a document, issued by the competent municipality ?
i n
those cases referred to i n
para 1, item
1, or
2. copies of documents, certifying the tax paid - in those cases referred to in para 1, item 2.
Tax Relief Relating to Taxation with a Final Annual (Patent) Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Part four.
AMOUNTS OF TAX. DETERMINING, WITHHOLDING AND PAYING THE TAX. TAX
RETURNS
Chapter eight.
ADVANCE WITHHOLDING OF THE TAX
Advance Withholding of the Tax on Income Originating from Employment Relationships
Art. 4 2.
(a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) (1 )
T he
ad van ce
ta x
o n
in co m e
originating from employment relationships shall be determined monthly by the employer on the grounds
of monthly basis of taxation.
(2) (s u ppl.
?
S G
9 5/0 9,
in
fo rc e
fro m
01.01.2010) T he
m onth ly
b asis
o f
taxation sh all
b e
determined b y
w ay
o f
re d ucin g
th e
ta x ab le
in co m e
u nder
A rt.
2 4
fo r
th e
respective m onth
b y
th e
mandatory insurance contributions, w hic h
a re
withheld b y
th e
employer a n d
are a t
the expense o f
the
natural person, in
accordance with the procedure set forth in
the Social Insurance Code and the Law on
Health In su ra n ce
o r
o blig ato ry
in su ra n ce
ab ro ad .
T he
m onth ly
b asis
fo r
ta x atio n
o f
se lf -e m plo yed
persons for income from employment le g al
relations under §
1, item 26, item ? L ?
of the supplementary
provisions s h all
b e
determined b y
deducing fro m
th e
taxable income under Art.24, calculated fo r
th e
respective m onth
th e
dep osite d
in
ad van ce
by
th e
co m pan y
in su ra n ce
co ntr ib utio ns
w hic h
th e
self-employed person is
obliged to make o n
his//her expense following th e
provisions o f
th e
Code o f
Social Insurance and the Law for the Health Insurance.
(3) The monthly basis of taxation shall be reduced by:
1. the tax relief for reduced capacity for work referred to in Art. 18, para. 2;
2. th e
ta x
re lie f
referred to
in
A rt.
1 9,
para. 2
in
those c ase s
where th e
amounts h av e
b een
withheld by the employer upon paying the income originating from the employment relationship.
(4) (s u ppl.
?
S G
95/0 9,
in
fo rc e
fro m
01.01.2010) T he
am ount
of
th e
ta x
due
sh all
be
determined b y
m ultip ly in g
th e
m onth ly
b asis
o f
taxation b y
a
ta x
rate o f
1 0
percent, a n d
fo r
income
U H F H L Y H G D V D P D U L Q H S H U V R Q ? D W D W D [ U D W H R I S H U F H Q W
(5) The tax referred to in
para. 4
s h all
be withheld b y
the employer upon the f in al
payment of
the taxable income for the respective month.
(6) In those cases where in
the course of the respective month only partial payments have been
made for the said month or for another month, the employer shall contribute the tax referred to in para.4,
determined on the gross amount of the aggregate of the partial payments.
(7) T he
ta x
contributed b y
th e
employer under para. 6
s h all
not b e
withheld from th e
partial
payment, and shall be deducted from the tax withheld under para. 5.
(8) Paragraph 6
sh all
n ot
a p ply
to
p artia l
payments fo r
th e
respective month in
those c ase s
where th e
fu ll
amount o f
th e
employment relationship income due b y
th e
employer fo r
th e
respective
month is paid prior to the end of the following month.
(9) The tax referred to in
paras. 1
through 8
s h all
b e
contributed within the time lim its
and in
accordance with the procedure set forth in Arts. 65 and 66.
Advance Tax on Income Originating from Business Activities
Art. 43. (amend. ?
SG 113/07, in
force from 01.01.2008; amend. -
SG 106/08, in
force from
01.01.2009) (1) A person who has received income from business activity referred to in
Art. 29 shall be
lia b le
for an advance tax on the difference between the taxable income and the contributions which the
lia b le
person is
o blig ed
to
m ak e
a t
h is /h er
o w n
expense fo r
th e
months o f
th e
quarter in
w hic h
th e
taxable income w as
acquired, a n d
in
c ase
th e
person is
not self-insured ?
th e
difference between th e
taxable income and the deducted mandatory insurance contributions.
(2) A ny
person w ith
5 0
o r
more th an
5 0
percent reduced work a b ility
sh all
b e
lia b le
fo r
a n
advance tax for income from business activity under Art. 29 after the taxable income of the person from
all
income sources acquired from the beginning of the taxable year and subject to taxation b y
tax on the
total an nual
ta x ab le
basis
re d uced
by
th e
w ith held
or
paid
on
acco unt
of
th e
pers o n
compulsory
insurance instalments exceeds BGN 7920.
(3) The amount o f
the tax due s h all
b e
calculated b y
multiplying the difference referred to in
para 1 by tax rate of 10 percent.
(4) Where payer of the income of business activity is
an establishment or a self-insured person
within the meaning o f
the Social Insurance Code, the tax amount s h all
b e
determined and the tax s h all
be withheld by the payer of the income upon its payment.
(5) Para 4 s h all
not apply, when the person acquiring the income is
a self-insured person in
the
sense o f
th e
Code o f
Social Insurance a n d
h as
declared the s a id
circumstance in
a
written declaration
before the payer of the income.
(6) Where the payer of the income of business activity is
not an establishment or a self-insured
person an d
th e
pers o n
acq uir in g
th e
in co m e
is
a
se lf -in su re d
pers o n
an d
has
decla re d
th e
sa id
circumstance before th e
payer o f
the income, the tax amount s h all
b e
determined a n d
the tax s h all
b e
paid by the person acquiring the income.
(7) The tax referred to in
para. 2
s h all
be contributed within the time lim its
and in
accordance
with the procedure set forth in Arts. 65 through 68.
(8) T hose
p ers o ns
w ho
carry
o ut
b usin ess
activ itie s
as
tr a d ers
w ith in
th e
m ean in g
o f
th e
Commercial Law, including the sole proprietors, s h all
make advance contributions at the tax rate of 15
percent in
accordance w ith
th e
conditions a n d
procedure se t
fo rth
in
th e
L aw
o n
Corporate Income
Taxation.
(9) (amend. ?
SG 95/09, in
force from 01.01.2010) In the cases of Para 2 the person acquiring
the in co m e
sh all
certif y
th e
le v el
of
re d uced
work
ab ility
by
an
ex pert
decis io n
of
TEMC/ELCCh/NEMC v alid
at
th e
date/dates o f
p ay m en t
o f
th e
in co m e,
a
co py
o f
w hic h
sh all
b e
presented once to the payer of the income, when he is obliged to withhold or pay the tax.
Advance Tax on Income Originating from Rent or Any Other Granting of the Use of
Rights or Property for Consideration
Art. 44. (1) (amend. ?
SG 113/07, in force from 01.01.2008) A person who has received income
from re n t
o r
a n y
other granting o f
th e
u se
o f
rig hts
o r
property fo r
consideration sh all
b e
lia b le
fo r
advance tax on the difference between the taxable amount as per Art. 31 and the insurance contributions,
which the person is obliged to make at his/her own expense.
(2) (new ?
SG 106/08, in
force from 01.01.2009) Any person with 50 or more than 50 percent
reduced work a b ility
shall be lia b le
for an advance tax for income from rent or any other non-gratituous
grant fo r
u se
o f
rig hts
o r
property afte r
th e
ta x ab le
in co m e
o f
th e
p ers o n
fro m
all
in co m e
sources
acquired from the beginning of the taxable year and subject to taxation by tax on the total annual taxable
basis re d uced
b y
th e
w ith held
o r
p aid
o n
account o f
th e
p ers o n
compulsory in su ra n ce
in sta lm en ts
exceeds BGN 7920.
(3) (amend. ?
SG 113/07, i n
force from 01.01.2008; prev. text of Para 02 ?
SG 106/08, i n
force
from 01.01.2009) The amount of the tax due shall be calculated by multiplying the difference referred to
in para 1 by tax rate of 10 percent.
(4) (prev. text of Para 03 ?
SG 106/08, in
force from 01.01.2009) The tax referred to in
para. 3
shall be contributed within the time limits and in accordance with the procedure set forth in Arts. 67 and
68.
Certifying the Withholding of the Tax
Art. 4 5.
(1 )
U pon
th e
S H U V R Q ? V
request, th e
e m plo yer
sh all
is su e
a
certificate o f
a
standard
layout showing the taxable income received in
the course of the year as w ell
as the tax withheld in
the
course o f
th e
y ear.
T he
em plo yer
sh all
is su e
th e
sa id
certif ic ate
n ot
la te r
th an
3 1
Ja n uary
o f
th e
subsequent year.
(2) T he
certif ic ate
re fe rre d
to
in
para .
1
sh all
als o
sh ow
th e
ta x
th at
has
been
w ith held
from/recovered to the employee upon determining the annual amount of the tax b y
the employer under
Art. 49
in
th ose
case s
w here
th e
withholding/recovery w as
performed prio r
to
31
Ja n uary
of
th e
subsequent year.
(3) In those cases where the circumstances referred to in Art. 5, para. 10 of the Social Insurance
Code are present, the certificate under para. 1 s h all
be issued b y
the respective territorial department of
the National Insurance Institute to which the pay-roll and the attachments thereto have been submitted.
(4) A s
for the paid income and the tax withheld in
accordance with the procedure set forth in
Art. 4 3,
th e
esta b lis h m en t
o r
th e
se lf -in su re d
p ers o n
th at
is
th e
p ay er
o f
in co m e
o rig in atin g
fro m
business a ctiv ity
s h all
draw u p
a
record thereof o f
a
standard layout a n d
s h all
submit it
to th e
person
who has received the income.
(5) (new ?
SG 113/07, i n
force from 01.01.2008) In case a certificate under para 1 has not been
requested b y
th e
worker/employee b y
3 1
January th e
following y ear,
it
s h all
b e
issued after th e
term
fixed in para 1 upon request.
(6) (n ew
?
S G
113/07, in
fo rc e
fro m
01.01.2008) T he
employer sh all
is su e
a n d
provide th e
worker/employee w ith
a
certif ic ate
u nder
p ara
1
b y
5
F eb ru ary
o f
th e
fo llo w in g
y ear,
in
case
th e
withholding/recovery as per Art. 49, para 5 and 6 has not been carried out till 31 January.
Chapter nine.
7 $ ; 5 $ 7 ( 6 2 ) 7 + ( ) , 1 $ / 7 $ ; 8 1 ' ( 5 & + $ 3 7 ( 5 6 , ; 7 L W O H D P H Q G ? 6 * L Q I R U F H
from 01.01.2008)
Final Taxes Rates under Chapter Six
Art. 46. (amend. ?
SG 113/07, in force from 01.01.2008) (1) The tax rate shall be 10 percent for
the income referred to in Art. 37 and Art. 38, para. 5, 8 and 10 shall be at the amount of 15 percent.
(2) The ta x
rate s h all
b e
7
percent fo r
income referred to in
Art. 38, para 8
in
those cases in
which amounts of money are received after the term of a l if e
insurance contract has expired, this being a
contract of 15 or more years of duration.
(3) The tax rate shall be 5 percent for income referred to in Art. 38, para 1.
(4) The f in al
tax under Chapter six shall be withheld and contributed within the time limits and
in accordance with the procedure set forth in Arts. 65 through 68.
Applicable Final Taxes for Sole Proprietors
Art. 47. Those persons who carry out business activities a s
traders w ith in
the meaning o f
the
Commercial Law, including the sole proprietors, s h all
apply those provisions o f
the Law on Corporate
Income Taxation which concern the taxation of income and the taxes withheld at the source.
Chapter ten.
ANNUAL TAXATION
Calculation of Tax Amount
Art. 48. (amend. ?
SG 113/07, i n
force from 01.01.2008) (1) The amount of the tax on the total
annual basis of taxation s h all
be determined b y
multiplying the total annual basis of taxation under Art.
17 by rate amounting to 10 percent.
(2) The amount of the tax on the annual basis of taxation for the income from business activity
as a
sole proprietor s h all
be calculated b y
multiplying the annual basis of taxation under Art. 28 b y
tax
rate amounting to 15 percent.
(3) The taxes calculated i n
accordance with para. 1 and 2 shall be reduced by the amount of the
tax that h as
b een
withheld and/or contributed in
advance, a n d
contributed in
advance, respectively, in
the course of the year of taxation with regards to the respective tax.
(4) The tax determined in
accordance with para. 1
s h all
also b e
reduced b y
the amount o f
the
natural S H U V R Q ? V
f in al
tax on income under Art. 37 that has been withheld, and contributed, respectively,
in
the course of the year of taxation, the said natural person being regarded as a
local natural person in
that year of taxation.
(5) T he
overpaid ta x
fo r
th e
y ear
o f
taxation o n
th e
a n nual
b asis
o f
taxation regarding th e
income fro m
b usin ess
activ ity
as
a
so le
proprietor m ay
b e
deducted fro m
th e
subsequent ad van ce
contributions and annual contributions for this tax due by a sole proprietor. In those cases in which it has
been established that a
sole proprietor unreasonably deducts tax, interest under the Law on Interest on
Taxes, Fees and Other Similar State Receivables shall be due for those advance contributions and annual
contributions that have not been made.
(6) (n ew
?
S G
95/09, in
fo rc e
fro m
01.01.2010) T he
ta x
o n
a n
a n nual
b asis
o f
taxation fo r
income from business a ctiv ity
a s
a
s o le
entrepreneur s h all
b e
remitted in
th e
amount o f
6 0
percent to
persons, registered as agricultural producers, for an annual basis of taxation from activity for production
of non-processed plant and animal products subject to the condition of tax remission under Art. 189b of
the Law of the corporate income taxation.
(7) (new ?
SG 95/09, in
force from 01.01.2010) Tax remission under par. 6
representing state
support fo r
ag ric u ltu ra l
producers, m ay
not
be
re ceiv ed
by
a
pers o n,
w ho
is
an
en te rp ris e
w ith
difficulties.
Annual Tax on Income Originating from Employment Relationships
Art. 4 9.
(1 )
(suppl. ?
S G
95/09, in
force fro m
01.01.2010) Not la te r
th an
3 1
January o f
th e
following year of taxation, the employer shall calculate the annual basis of taxation under Art. 25, par. 1
and 3 ,
decreased in
accordance with the procedure set forth in
para. 3 ,
and s h all
determine the annual
amount o f
th e
ta x
o n
condition that a s
a t
3 1
December o f
th e
y ear
o f
taxation he/she is
the employer
under the basic employment relationship of the employee.
(2) In those cases where, in the course of the year of taxation, the employee has or used to have
a labour contract for additional employment with another employer, or he/she had a
basic employment
relationship with another employer, the employer referred to in para. 1 shall include the income received
from the other employer when calculating the annual amount of the tax on condition that the employee
has submitted to him/her the certificate referred to in Art. 45 issued by the other employer.
(3) (suppl. ?
SG 95/09, in
force from 01.01.2010) The annual b asis
o f
taxation referred to in
Art. 25, par. 1 and 3 shall be decreased by the annual amount of:
1. th e
ta x
re lie f
referred to
in
Arts. 1 9
a n d
2 2
in
those c ase s
where th e
amounts h av e
b een
withheld by the employer upon payment of the income originating from the employment relationship;
D P H Q G ? 6 * L Q I R U F H I U R P W K H W D [ U H O L H I U H I H U U H G W R L Q $ U W V D Q G
(4) Paragraph 3
sh all
a p ply
in
those c ase s
where th e
employee su bm its
to
th e
employer th e
documents sp ecif ie d
b elo w
w ith in
th e
p erio d
fro m
3 0
November u ntil
3 1
December o f
th e
y ear
o f
taxation:
1. a
c o py
o f
a
v alid
d ecis io n
o f
th e
M ed ic al
Expert Commission o n
Employment Matters/
1 D W L R Q D O ( [ S H U W & R P P L V V L R Q R Q ( P S O R P H Q W 0 D W W H U V ? I R U W K H W D [ U H O L H I U H I H U U H G W R L Q $ U W
F R S L H V R I W K H F R Q W U D F W V Z L W K W K H L Q V X U D Q F H F R P S D Q ? I R U W K H W D [ U H O L H I U H I H U U H G W R L Q $ U W
3. copies of the documents evidencing that the contributions have been made ?
for the tax relief
referred to in Art. 20;
U H Y R N H G ? 6 * L Q I R U F H I U R P
5. copies of documents certifying that the donee belongs to those specified in
Art. 22 and that
W K H G R Q D W L R Q K D V E H H Q U H F H L Y H G ? I R U W K H W D [ U H O L H I U H I H U U H G W R L Q $ U W
(5) In those cases where the determined annual amount of the tax is
higher than the amount of
the tax that was withheld from the employee in
the course of the year, the difference s h all
be withheld
from the person not later than 31 January of the subsequent year.
(6) I n
those cases where the determined annual amount of the tax is
lower than the amount of
the tax that was withheld from the employee in
the course o f
the year, the employer s h all
recover the
balance to the person not later than 31 January of the subsequent year.
(7) T he
amount recovered under para. 6
s h all
b e
set-off b y
th e
employer against subsequent
contributions to
th e
C en tr a l
B udget
fo r
ta x es
on
th at
S H U V R Q ? V
or
oth er
S H U V R Q V ?
in co m e
fro m
employment relationships.
(8) (new ?
SG 95/09, in
force from 01.01.2010) For th e
determination o f
th e
annual b asis
o f
taxation an d
o f
th e
an nual
ta x
fo llo w in g
th e
procedure la id
d ow n
in
th e
preceding paragraphs, th e
income from employment le g al
relations under §
1 ,
ite m
26, ite m
? L ?
o f
the supplementary provisions
shall not be included
Chapter eleven.
DECLARING THE TAX
Section I.
Annual Tax Return
Obligation to Submit an Annual Tax Return
Art. 50. (1) (amend. ?
SG 113/07, i n
force from 01.01.2008) Local natural persons shall submit
an annual tax return of a standard form regarding the following:
1. the income received in the course of the year subject to taxation with a tax on the total annual
basis of taxation and with a tax on the annual basis of taxation referred to in Art. 28;
2. (amend. ?
SG 99/09, in
force from 01.01.2010) the income subject to taxation with a
patent
tax pursuant to the Law for Local Taxes and Fees;
3. (amend. -
SG 106/08, in
force from 01.01.2009) the income acquired from foreign sources
during the year from dividends, liquidation assets and income under Art. 38, Para 8;
4. th e
sto ck s
an d
sh are s
th ey
hold
in
co m pan ie s,
esta b lis h m en ts
an d
im movab le
property
abroad;
Q H Z ? 6 * L Q I R U F H I U R P J U D Q W H G U H F H L Y H G P R Q H O R D Q V D V I R O O R Z V
a) non-lapsed part of any granted money loans during the tax year, i f
their total amount exceeds
BGN 10 000;
b) th e
remainders o f
th e
money lo an s
provided during th e
current a n d
th e
fiv e
preceding ta x
years that h av e
not lapsed b y
the e n d
o f
the tax year, if
the total amount o f
these remainders exceeds
BGN 40 000;
c) th e
non-lapsed part o f
th e
money lo an s
received during th e
ta x
y ear,
if
th eir
total amount
exceeds BGN 10 000, except the received credits, provided by credit institutions in the sense of the Law
on the Credit Institutions;
d) th e
remainders o f
th e
money lo an s
received during th e
current a n d
th e
fiv e
preceding ta x
years that h av e
n ot
la p se d
b y
th e
e n d
o f
th e
ta x
y ear,
except th e
received credits provided b y
credit
institutions in
th e
sense o f
th e
Law o n
th e
Credit Institutions, if
th e
total amount o f
these remainders
exceeds BGN 40 000;
(2) (a m en d.
?
S G
113/0 7,
in
fo rc e
fro m
01.01.2008; su ppl.
?
S G
99/0 9,
in
fo rc e
fro m
01.01.2010) Foreign natural persons shall submit an annual tax return referred to in para. 1 regarding the
income under para 1, items 1 and 2 and in the cases of Art. 37a.
(3) (amend. ?
SG 99/09, in force from 01.01.2010) Those local and foreign natural persons who
have received income originating from employment relationships referred to in
§
1, item 26, letters " f"
and ? L ?
o f
th e
Supplementary Provision s h all
submit a n
a n nual
ta x
return under para. 1
regarding th e
said income.
(4) (amend. ?
SG 113/07, i n
force from 01.01.2008) The annual tax return referred to in para. 1
shall have attached thereto the certificates under Art. 45.
(5) (amend. ?
SG 113/07, in
force from 01.01.2008) The lo cal
natural persons s h all
attach to
their an nual
ta x
re tu rn
u nder
p ara
1
certificates sh ow in g
th e
amount o f
th e
ta x
an d
th e
mandatory
insurance contributions p aid
abroad, th is
certificate b ein g
is su ed
b y
th e
competent authorities o f
th e
other State.
(6) (new ?
SG 113/07, in force from 01.01.2008) With regards to income from a source abroad,
at th e
taxation o f
w hic h
"Exemption w ith
progression" method o f
a v oid in g
double taxation is
b ein g
applied acco rd in g
to
th e
ta x
ag re em en t
in
fo rc e,
lo cal
natu ra l
pers o ns
are
not
oblig ed
to
pre se n t
certificate of the amount of the deposited tax as per para 5.
(7) (n ew
?
S G
113/07, in
fo rc e
fro m
01.01.2008) Persons c arry in g
o ut
b usin ess
a ctiv ity
a s
traders w ith in
th e
meaning o f
th e
Commercial la w ,
in clu din g
s o le
proprietors, s h all
announce the due
and p aid
taxes o n
th eir
income b y
a n nual
ta x
return under para 1
according to th e
Law o n
Corporate
Income Taxation.
(8) (new ?
SG 113/07, in
force from 01.01.2008) In respect of the income of minors, underage
natural persons a n d
th e
o nes
u nder
ju dic ia l
d is a b ility
th eir
a n nual
ta x
returns u nder
p ara
1
sh all
b e
submitted by their parents, respectively guardians.
Filing an Annual Business Report (Title amend. - SG 95/09, in force from 01.01.2010)
Art. 51. (1) (amend. ?
SG 95/09, in
force from 01.01.2010) The persons carrying out business
activities a s
traders w ith in
th e
m ean in g
o f
th e
Commercial Law, in clu din g
th e
so le
proprietors, sh all
submit an
an nual
fin an cia l
statement, in clu din g
th e
supplements thereto, together w ith
th eir
an nual
business report.
(2) A n
a n nual
b usin ess
report sh all
n ot
b e
file d
b y
th e
persons u nder
p ar.
1 ,
fo r
w hic h
th e
following conditions are met at the same time:
1. they have not run any business in the tax year;
2. th ey
h av e
n ot
reported fo r
th e
ta x
y ear
in co m e
o r
expenses according to
th e
accountancy
laws.
Exemption from the Obligation to Submit an Annual Tax Return
Art. 52. (1) (prev. Art. 52 ?
SG 95/09, in force from 01.01.2010) No annual tax return is due by
those persons who have received only:
1. (a m en d.
?
S G
95/0 9,
in
fo rc e
fro m
01.01.2010) in co m e
orig in atin g
fro m
em plo ym en t
relationships in
th ose
c ase s
w here
a s
o f
3 1
December o f
th e
ta x
y ear
th e
person h as
g ot
o nly
o ne
employer and he/she has determined the amount of the annual tax on the entire income received in
the
course o f
th e
y ear
o f
taxation from employment relationships, a n d
th e
total amount o f
th e
ta x
fo r
th e
year of taxation was withheld prior to 31 January of the subsequent year, and/or
2. (a m en d.
?
S G
113/0 7,
in
fo rc e
fro m
01.01.2008; am en d.
?
S G
95/0 9,
in
fo rc e
fro m
01.01.2010) non-taxable income, and/or
3. (suppl. ?
SG 113/07, in
force from 01.01.2008) income taxable with the f in al
tax referred to
in Art. 38, except for the income as per Art. 50, para 1, item 3, and/or
4.(suppl. ?
SG 95/09, in
force from 01.01.2010) foreign S H U V R Q V ?
income taxed with f in al
tax,
except for the cases under Art. 37a.
(2) (new ?
SG 95/09, in force from 01.01.2010) Regardless the circumstances under par. 1 local
natural persons shall be obliged to f ile
an annual tax return in cases under Art. 50, par. 1, item 5 and par.
3.
Time Limits for the Submission of the Annual Tax Return
Art. 5 3.
(1 )
T he
an nual
ta x
re tu rn
sh all
b e
su bm itte d
n ot
la te r
th an
3 0
A pril
o f
th e
y ear
subsequent to the year during which the income was received.
(2) Those persons who submit th eir
a n nual
ta x
return prior to 1 0
February o f
th e
subsequent
year, shall enjoy a relief of 5 percent of the portion of tax on condition that they pay the amount payable
under the annual tax return prior to the same time limit, i.e. prior to 10 February.
(3) Those persons who submit their annual tax return within the time l im it
referred to in para. 1
electronically, sh all
e n jo y
a
re lie f
o f
5
percent o f
th e
portion o f
ta x
p aid
w ith in
th e
sa m e
tim e
lim it
which was payable under the annual tax return on condition that they have not applied para. 2.
Venue of Submission of the Annual Tax Return
Art. 5 4.
(1 )
(amend. ?
S G
95/09, in
fo rc e
fro m
01.01.2010) T he
a n nual
ta x
return sh all
b e
submitted with the territorial directorate o f
the National Revenue Agency b y
the residential address o f
the natural person, including the sole proprietor, who is the bearer of the obligation to pay the tax.
(2) (new ?
SG 113/07, in force from 01.01.2008) In those cases referred to in Art. 50. para 8 the
annual tax return shall be submitted i n
the territorial directorate of NRA at the permanent address of the
natural person, who is minor, underage, or under judicial disability.
(3) (prev. text o f
para 2
?
SG 113/07, in
force from 01.01.2008) In
those cases in
w hic h
th e
annual tax return o f
a
foreign natural person is
submitted b y
proxy having a
residential address within
the country, th e
a n nual
ta x
re tu rn
sh all
b e
submitted w ith
th e
territorial directorate o f
th e
N atio nal
Revenue Agency by the residential address of the proxy.
(4) (prev. text o f
para 3, amend. ?
SG 113/07, in
force from 01.01.2008) Except for the cases
referred to
in
para s.
1
th ro ugh
3,
th e
an nual
ta x
re tu rn
sh all
be
su bm itte d
w ith
S ofia
T errito ria l
Directorate of the National Revenue Agency.
Section II.
Tax Return Regarding the Income Taxable with a Final Tax
Obligation to Submit an Annual Tax Return Regarding the Income under Chapter Six
Art. 5 5.
(1 )
(a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) T he
establishments an d
th e
self-insured p ers o ns
th at
are
p ay ers
o f
in co m e
an d
h av e
w ith held
th e
fin al
ta x
o n
fo re ig n
n atu ra l
S H U V R Q V ?
income due/paid under Chapter Six, shall declare these circumstances by way of a tax return of
a standard form.
(2) The tax return referred to in
para. 1 s h all
be submitted b y
the person who has received the
income in
those cases in
w hic h
the payer o f
the income does not h av e
the obligation to withhold a n d
contribute the tax.
(3) The ta x
return s h all
state th e
income S D H U ? V
data, whoever th e
person submitting the tax
return might be.
Time Limits for the Submission of the Tax Return under Chapter Six
Art. 56. (1) (amend. ?
SG 113/07, in
force from 01.01.2008) The tax return referred to in
Art.
55, para. 1
s h all
b e
submitted b y
th e
e n d
o f
th e
month following th e
month during w hic h
th e
tax h as
been contributed.
(2) (new ?
SG 113/07, in
force from 01.01.2008) The tax return referred to in
Art. 55, para 1
shall be submitted b y
the person, who has acquired the income within the term for deposition of the tax
as per Art. 67, para 1.
(3) (prev. text o f
para 2
?
SG 113/07, in
force from 01.01.2008) The tax return referred to in
Art. 55, para. 1 concerning the income under Art. 38, para. 5 s h all
be submitted b y
the person who has
received the income, prior to the end of the month following the month in the course of which the stocks
and shares in the recipient company/the newly established company were acquired.
Venue of Submission of the Tax Return Concerning the Income under Chapter Six
Art. 57. (1) The tax return referred to in
Art. 55, para. 1
s h all
be submitted with the territorial
directorate of the National Revenue Agency either b y
the place of registration or b y
the place in
which
the payer of the income should be registered.
(2) In those cases in
which the foreign natural S H U V R Q ? V
tax return referred to in
Art. 55, para. 2
is
submitted b y
proxy h av in g
a
residential address w ith in
th e
country, th e
a n nual
ta x
return sh all
b e
submitted with the territorial directorate o f
the National Revenue Agency b y
the residential address o f
the proxy.
(3) Except for the cases referred to in
paras. 1 through 2, the tax return s h all
be submitted with
Sofia Territorial Directorate of the National Revenue Agency.
Paid Tax Certificate of a Foreign Natural Person
Art. 58. (1) (suppl. -
SG 106/08, in
force from 01.01.2009; prev. Art. 58, amend. and suppl. ?
SG 95/09, in
force from 01.01.2010) Upon the request o f
the person, he/she is
issued a
certificate o f
a
standard layout evidencing that the foreign natural person has deposited the tax under this Law. The said
request is filed with the territorial directorate of the National Revenue Agency with which the tax return
referred to in Art. 50 or Art. 55 has been submitted, or is subject to filing.
(2) (n ew
?
S G
9 5/0 9,
in
fo rc e
fro m
01.01.2010) U pon
re q uest
o f
th e
fo re ig n
p ers o n
th e
certificate o f
deposited ta x
o n
th e
total annual b asis
o f
taxation and/or o f
deposited tax o n
the annual
basis of taxation under Art. 28 shall be issued separately for the individual types of income under Art. 8,
except for the cases where the income is realized through a specified basis.
Section III.
7 D [ 5 H W X U Q I R U 7 D [ D W L R Q Z L W K D ) L Q D O $ Q Q X D O 3 D W H Q W 7 D [ U H Y R N H G ? 6 * L Q I R U F H I U R P
01.01.2008)
Obligation to Submit a Tax Return Regarding the Taxation with a Final Annual (Patent)
Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Time Limits for the Submission of the Tax Return Regarding the Taxation with a Final
Annual (Patent) Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Venue of Submission of the Tax Return Regarding the Taxation with a Final Annual
(Patent) Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Section IV.
Time Limits and Venue of Submission of Tax Returns Concerning Alternative Taxes Due by Sole
Proprietors
Obligation and Time Limits for the Submission of Tax Returns Concerning Alternative
Taxes Due by Sole Proprietors
Art. 62. As for the activities taxable under Art. 26, para. 5, the sole proprietors s h all
apply the
provisions regarding the submission of tax returns under the Law on Corporate Income Taxation.
Venue of Submission of Tax Returns Concerning Alternative Taxes Due by Sole
Proprietors
Art. 63. The tax returns referred to in
Art. 62 s h all
be submitted with the territorial directorate
of the National Revenue Agency by the residential address of the natural person.
Section V.
Approval of Standard Forms
Approval of Standard Forms
Art. 64. (1) The standard forms of the tax returns under this Law s h all
be approved b y
way of
an Ordinance of the Minister of Finance.
(2) (revoked - SG 106/08, in force from 01.01.2009)
(3) The standard forms o f
th e
account o f
p aid
amounts a n d
the certificate under th is
Law, a s
well a s
th e
certificate referred to
in
A rt.
5 8
a n d
th e
record referred to
in
A rt.
7 3,
p ara .
1 ,
sh all
b e
approved by way of an Ordinance of the Minister of Finance.
(4) (amend. - SG 106/08, in
force from 01.01.2009) The orders and the standard forms referred
to in paras. 1 and 3 shall be promulgated in the State Gazette.
Chapter twelve.
PAYMENT OF TAXES
Section I.
Time Limits and Venue of Paying the Taxes Withheld by the Payer of the Income
Time Limits for Paying the Taxes Withheld by the Payer of the Income
Art. 65. (1) (amend. and suppl. ?
SG 113/07, in
force from 01.01.2008) The tax referred to in
Art. 4 6
o n
th e
in co m e
u nder
A rt.
3 7,
p ara
1
through 9
a n d
A rt.
3 8,
p ara .
1 0
sh all
b e
w ith held
a n d
contributed b y
the establishment or the self-insured person that is
the payer o f
the income, prior to the
end of the month following the month for which the income is charged by the undertaking or it has been
paid by the self-insured person.
(2) The ta x
referred to in
Art. 4 6
o n
the income under Art. 38, para. 2
s h all
b e
withheld a n d
contributed b y
th e
establishment w hic h
is
th e
p ay er
o f
th e
in co m e,
p rio r
to
th e
en d
o f
th e
m onth
following the month in the course of which the dividend distribution decision was taken.
(3) The ta x
referred to in
Art. 4 6
o n
the income under Art. 38, para. 3
s h all
b e
withheld a n d
contributed b y
th e
establishment w hic h
is
th e
p ay er
o f
th e
in co m e,
p rio r
to
th e
en d
o f
th e
m onth
following the month during which the expenses were charged.
(4) The ta x
referred to in
Art. 4 6
o n
the income under Art. 38, para. 4
s h all
b e
withheld a n d
contributed b y
th e
establishment w hic h
is
th e
p ay er
o f
th e
in co m e,
p rio r
to
th e
en d
o f
th e
m onth
following the month during which the liquidation share was allotted.
(5) Paragraph 4 shall not apply to the income originating from liquidation shares in the cases of
transfer o f
property in
th e
course o f
transformation in
accordance w ith
th e
procedure set forth in
Art.
265 of the Commercial Law on condition that the tax is
contributed under Art. 67 b y
the sole proprietor
who has received the income.
(6) The tax referred to i n
Art. 46 on the income under Art. 37, para. 1, items 10 through 12 and
Art. 38, para. 5 shall be paid in accordance with the procedure set forth in Art. 67 by the person who has
received the income.
(7) (suppl. - SG 106/08, in
force from 01.01.2009) The tax referred to in
Art. 46 on the income
under Art. 38, para. 8 shall be withheld and contributed by the insurance company, i f
it is a local person,
prior to the end of the month following the month during which the income was received b y
the natural
person.
(8) The insurance company referred to in
para. 7
s h all
establish the portion of the non-taxable
income referred to in
Art. 38, para. 9
on the grounds o f
a
written declaration submitted b y
the natural
person who is the bearer of the obligation to pay the tax.
(9) (amend. ?
SG 113/07, in force from 01.01.2008) In those cases in which the income referred
to in
Art. 37 and Art. 38, para. 1 is
in
favour of a person who is
a local person in
a State with which the
Republic of Bulgaria has concluded a
treaty for the avoidance of double taxation, the tax referred to in
Art. 46 shall be withheld and contributed either by the establishment or by the self-insured person that is
the payer of the income, within a term of three months following the beginning of the month subsequent
to the month: for which the income referred to in
para. 1 is
due or during which it
has been paid; or in
which the decision referred to in
para. 2 was taken; or the expenses referred to in
para. 3 were charged;
or the liquidation share referred to in para. 4 was allotted.
(10) The tax which the payer of the income is
obligated to withhold as referred to in
Arts. 42,
43 and Art. 49, paras. 2 and 5, s h all
be contributed not later than the 10th day of the month subsequent
to the month during which the tax was withheld.
(11) T he
ta x
referred to in
Art. 4 2,
para. 5
s h all
b e
contributed not la te r
th an
th e
e n d
o f
th e
month subsequent to the month during which the partial payments were made.
Venue of Contributing the Tax Withheld by the Payer of Income
Art. 66. (1) (prev. Art. 66 ?
SG 95/09, in
force from 01.01.2010) The tax referred to in
Art. 65
shall b e
contributed to th e
Central Budget b y
crediting th e
account o f
th e
territorial directorate o f
the
National Revenue Agency by the registration of the payer of the income.
(2) (n ew
?
S G
95/09, in
fo rc e
fro m
01.01.2010) T he
overpaid ta x
o r
p aid
amounts without
being due as taxes on income under Art. 37, par. 1, item 1 ?
9 and Art. 38, received b y
foreign natural
persons, s h all
b e
refunded b y
the territorial directorate o f
the National Revenue Agency, in
which the
income tax of the person is subject to payment.
Section II.
Time Limits and Venue of Contributing the Taxes on the Part of the Person Receiving the Income
Time Limits for Contributing the Taxes on the Part of the Person Receiving the Income
Art. 67. (1) In those cases in
which the payer of the income has no obligation to withhold and
contribute the tax, the tax referred to in
Arts. 43, 44 and 46 s h all
be contributed b y
the person who has
received the income, not later than the 15th day of the month subsequent to the quarter in
the course of
which the income was received.
(2) (amend. - SG 106/08, i n
force from 01.01.2009) No advance payment referred to in Art. 43,
para. 6 and Art. 44 shall be due on income received during the fourth quarter of the year of taxation.
(3) The tax referred to in Art. 46, determined as at the time of the exchange under Art. 38, para.
5, s h all
b e
contributed b y
th e
person who h as
received th e
income, not later than th e
15th d ay
o f
th e
month following the quarter in the course of which the subsequent sale or exchange of stocks and shares
in
the receiving company/the newly established company took place, including the cases of subsequent
exchange of the stocks or shares in connection with transformation of commercial companies.
(4) The tax due under Art. 48 shall be contributed not later than 30 April of the year subsequent
to the year in the course of which the income was received.
Venue of Contributing the Taxes on the Part of the Person Receiving the Income
Art. 68. (1) The ta x
referred to in
Arts. 43, 44, 4 6
a n d
4 8
s h all
b e
contributed to the Central
Budget b y
crediting th e
account o f
th e
territorial directorate o f
th e
National Revenue Agency b y
th e
residential address of the local natural person, including the cases of sole proprietors.
(2) The tax referred to in
para. 1
due b y
a
foreign person who h as
received income b y
proxy
having h is /h er
re sid en tia l
address w ith in
th e
country, sh all
b e
contributed to
th e
C en tr a l
Budget b y
crediting th e
account o f
th e
territorial directorate o f
th e
National Revenue A gen cy
b y
th e
residential
address of the proxy.
(3) In
th ose
c ase s
in
w hic h
it
is
im possib le
to
determine th e
v en ue
o f
contributing th e
ta x
referred to in
paras. 1 and 2, the tax s h all
be contributed to the Central Budget b y
crediting the account
of Sofia Territorial Directorate of the National Revenue Agency.
(4) (n ew
?
S G
95/09, in
fo rc e
fro m
01.01.2010) T he
overpaid ta x
o r
p aid
amounts without
being due as taxes on income under Art. 37, par. 1, item 10 ?
12 and Art. 38, received by foreign natural
persons, s h all
b e
refunded b y
the territorial directorate o f
the National Revenue Agency, in
which the
income tax of the person is subject to payment.
Section III.
7 L P H / L P L W V D Q G 9 H Q X H R I & R Q W U L E X W L Q J W K H ) L Q D O $ Q Q X D O 3 D W H Q W 7 D [ U H Y R N H G ? 6 * L Q
force from 01.01.2008)
Time Limits for Contributing the Final Annual (Patent) Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Venue of Contributing the Final Annual (Patent) Tax
$ U W U H Y R N H G ? 6 * L Q I R U F H I U R P
Section IV.
Time Limits and Venue of Contributing the Alternative Taxes on the Part of Sole Proprietors
Time Limits for Contributing the Alternative Taxes on the Part of Sole Proprietors
Art. 71. A s
fo r
the activities taxable under Art. 26, para. 5 ,
sole proprietors s h all
a p ply
those
provisions of the Law on Corporate Income Taxation which concern the time limits for contributing the
tax.
Venue of Contributing the Alternative Taxes on the Part of Sole Proprietors
Art. 72. The taxes referred to in
Art. 71 s h all
be contributed to the Central Budget b y
crediting
the account o f
the territorial directorate o f
the National Revenue Agency b y
the residential address o f
the natural person.
Part five.
PROVISION OF INFORMATION, APPLICABLE PROVISIONS OF OTHER LAWS AND
RECOVERY OF THE TAX WITHHELD IN ANOTHER MEMBER STATE OF THE
EUROPEAN UNION (TITLE AMEND. - SG 106/08, IN FORCE FROM 01.01.2009)
Chapter thirteen.
PROVISION OF INFORMATION
, Q F R P H 3 D H U V ? 2 E O L J D W L R Q W R 3 U R Y L G H , Q I R U P D W L R Q
Art. 7 3.
(1 )
(a m en d.
?
S G
113/07, in
fo rc e
fro m
01.01.2008) T he
establishments an d
th e
self-insured persons that a re
payers o f
income w ith in
th e
meaning o f
th e
Social Insurance Code s h all
draw up a
record of a
standard layout regarding the income paid to natural persons in
the course of the
year of taxation.
(2) (n ew
?
S G
113/07, in
force fro m
01.01.2008) T he
record referred to
in
p ara
1
sh all
n ot
include th e
p aid
in co m e
fro m
employment re la tio ns
an d
compulsory so cia l
se cu rity ,
as
w ell
as
th e
income subject to declaring according to the procedure laid down in Art. 55, para 1.
(3) (new - SG 106/08, i n
force from 01.01.2009) The income referred to in Art. 38, Para 1 shall
be included i n
the record referred to i n
Para 1 for the taxable year, i n
which the decision for distribution
of the dividend was taken, for the taxable year of accrual of the expense - in cases of hidden distribution
of profit, or for the taxable year of accrual of the liquidation share.
(4) (prev. text o f
para 2
?
S G
113/07, in
force fro m
01.01.2008; prev. text o f
Para 0 3
-
S G
106/08, in force from 01.01.2009; suppl. - SG 95/09, in force from 01.01.2010) The record referred to in
para. 1
s h all
b e
submitted not later than 30 A pril
of the subsequent year to the territorial directorate of
the National Revenue A gen cy
b y
th e
registration o f
th e
p ay er
o f
th e
income. In
c ase
o f
w in din g
u p
through liquidation o r
announced in so lv en cy
o f
a n
enterprise, th e
record o f
p ar.
1
sh all
b e
provided
within th e
terms a n d
following th e
procedure o f
filin g
a
ta x
return under Art. 1 62
o f
th e
L aw
o f
th e
Corporate Income Taxation.
(5) (prev. text o f
para 3
?
S G
113/07, in
force fro m
01.01.2008; prev. text o f
Para 0 4
-
S G
106/08, i n
force from 01.01.2009) In those cases i n
which the persons referred to i n
para. 1 paid income
to more than 10 natural persons in
the course o f
the year o f
taxation, the record under para. 1
s h all
b e
submitted o nly
electronically in
the form and in
accordance with the procedure approved b y
way of an
Ordinance of the Executive Director of the National Revenue Agency.
(6) (prev. text o f
para 4
?
S G
113/07, in
force fro m
01.01.2008; prev. text o f
Para 0 5
-
S G
106/08, in force from 01.01.2009) On a regular basis, the employers shall provide information regarding
both the income paid under employment relationships and the tax withheld on that income. The Minister
of Finance shall issue an order regarding the content and procedure for providing and storing the data.
6 W D W H $ X W K R U L W L H V ? 2 E O L J D W L R Q W R 3 U R Y L G H , Q I R U P D W L R Q
Art. 74. (1) Upon request o f
the revenue bodies, the Ministry o f
the Interior s h all
provide the
information needed for establishing whether a person is a local or a foreign one as referred to in Chapter
One.
(2) Each year, u ntil
15 December, the Ministry o f
Regional Development and Public Utilities
shall submit to the National Revenue Agency updated data regarding the population b y
current address,
the said data being systematized by settlements.
Chapter fourteen.
APPLICABLE PROVISIONS OF OTHER LAWS
Priority Application of Tax Treaties and Other International Contracts
Art. 7 5.
In
those c ase s
in
w hic h
a
ta x
treaty o r
another international contract ra tif ie d
b y
th e
Republic of Bulgaria, which has been promulgated and has taken effect, contains provisions that d if fe r
from th e
provisions o f
th is
Law, it
is
th e
provisions o f
th e
respective ta x
treaty o r
contract that s h all
apply.
Tax input
Art. 76. (1) Except for the cases referred to in
Art. 75, in
determining the income tax the local
natural persons s h all
b e
entitled to tax input regarding identical or s im ila r
foreign taxes that have been
charged abroad by the respective competent authorities.
(2) The persons referred to in
para. 1
s h all
b e
entitled to tax input for a ll
taxes on dividends,
interest, D X W K R U ? V
an d
lic en ce
remuneration, remuneration fo r
te ch nic al
se rv ic es
an d
re n t
p aid
fro m
sources abroad.
(3) The ta x
input referred to in
para. 2
s h all
b e
determined separately per each State a n d
per
each type o f
income and s h all
b e
lim ite d
to the amount o f
the Bulgarian tax on the income that would
have been due on that income from a source abroad if the tax had been applied to local income.
(4) If necessary, the Minister of Finance shall be entitled:
1. to determine which taxes are identical or similar to the tax on the income of natural persons;
2. to establish the origin and the specific amount of the local or foreign income received from
the respective source;
3. to refuse to recognize the entitlement to tax input regarding those foreign taxes by which the
tax input has been wrongfully increased.
Prevention of Tax Evasion
Art. 77. I n
determining the obligations o f
persons under th is
Law, in
the cases o f
transactions
involving related parties, and transactions concluded on terms and conditions the observance o f
which
results in
ta x
ev asio n
an d
ap plic atio n
of
m ark et
pric es,
an d
tr a n sfe rs
co nnecte d
w ith
a
certa in
establishment, an d
als o
w here
in te re st
under
fin an cia l
le asin g
is
co ncern ed ,
it
is
th e
re sp ectiv e
provisions of the Law on Corporate Income Taxation regarding the prevention of tax evasion that s h all
apply.
Chapter fifteen.
DEDUCTION AND RECOVERY OF TAX PAID IN ANOTHER MEMBER STATE OF THE
EUROPEAN UNION (TITLE AMEND. - SG 106/08, IN FORCE FROM 01.01.2009)
Deduction of a Tax Withheld in Another Member State of the European Union
Art. 78. (1) The tax withheld in
the Kingdom of Belgium, the Republic of Austria or the Grand
Duchy o f
Luxembourg o n
sa v in gs
in co m e
p aid
b y
a n
agent-payer to
lo cal
natural persons, w ith
th e
exception of sole proprietors, s h all
be deducted from the tax due on the total annual basis of taxation of
the person determined in the annual tax return submitted as referred to in Art. 50.
(2) In
those cases in
which after the deduction referred to in
para. 1
there is
a
remainder, the
latter s h all
be recovered on the grounds of a
request f ile d
within the time lim its
and in
accordance with
the procedure set forth in Chapter Sixteen of the Tax Insurance Procedure Code.
(3) T he
an nual
ta x
re tu rn
re fe rre d
to
in
para .
1,
an d
th e
re q uest
re fe rre d
to
in
para .
2,
respectively, sh all
h av e
a
document attached thereto, th e
la tte r
ev id en cin g
b oth
th e
am ount
o f
th e
income and the amount of the tax withheld under para. 1 in the respective State, the said document being
issued by the competent tax authorities of that State.
Recovery of the Tax Withheld in Another Member State of the European Union (title
amend. - SG 106/08, In force from 01.01.2009)
Art. 79. (1) With the exception o f
the sole proprietors, a n y
natural person who does not have
the obligation to submit the declaration referred to in
Art. 50 s h all
be entitled to the recovery of the tax
withheld in
the Kingdom o f
Belgium, the Republic o f
Austria or the Grand Duchy o f
Luxembourg on
savings income paid by an agent-payer.
(2) T he
recovery referred to
in
para. 1
sh all
b e
carried out o n
th e
grounds o f
a
request a n d
within th e
tim e
lim its
a n d
in
accordance w ith
th e
procedure se t
fo rth
in
Chapter Sixteen o f
th e
T ax
Insurance Procedure Code.
(3) T he
re q uest
re fe rre d
to
in
para .
2
sh all
hav e
a
docu m en t
atta ch ed
thereto, th e
la tte r
evidencing b oth
th e
amount o f
th e
in co m e
a n d
th e
amount o f
th e
ta x
w ith held
u nder
para. 1
in
th e
respective State, the said document being issued by the competent tax authorities of that State.
Part six.
ADMINISTRATIVE SANCTIONS PROVISIONS
Art. 80. (1) A person who f a ils
to submit i n
due time the tax return referred to i n
this Law shall
be punished with a fine or a pecuniary sanction of up to BGN 500, unless the person is subject to a more
severe punishment.
(2) A
person who fa ils
to state or states fa ls e
data or circumstances in
his/her tax return, th is
bringing about either a lower amount of the tax or exemption from tax, shall be punished with a fine or a
pecuniary sanction of up to BGN 1000, unless the person is subject to a more severe punishment.
(3) In the cases of a
repeated violation the f in e
or the pecuniary sanction referred to in
para. 1
shall be at the amount of up to BGN 1000, and the one referred to in para. 2 shall be at the amount of up
to BGN 2000, unless the person is subject to a more severe punishment.
Art. 8 0a.
(n ew
?
S G
9 9/0 9,
in
fo rc e
fro m
01.01.2010) (1 )
A ny
n atu ra l
p ers o n
th at,
b ein g
obliged, fa ils
to is su e
a
statement o r
misrepresents information under Art. 50, Para 1 ,
Item 5
s h all
b e
imposed a fine amounting to 10 percent of the non-stated amounts.
(2) In
case
of
repeated offe n ce
th e
fin e
under
P ara
1
sh all
am ount
to
15
p erc en t
o f
th e
non-stated amounts, if the persons is not subject to a more severe penalty.
Art. 81. In those cases where a person who is
a payer of income f a ils
to withhold or contribute
the tax in
due time, he/she s h all
b e
punished with a
fin e
or a
pecuniary sanction o f
u p
to BGN 1000,
unless the person is subject to a more severe punishment.
Art. 82. (1) In the cases of failure to submit in due time the information referred to in Art. 73, as
well a s
in
th e
cases o f
stating fa ls e
o r
incomplete data, th e
person s h all
b e
punished w ith
a
fin e
o r
a
pecuniary sanction of up to BGN 250, unless the person is subject to a more severe punishment.
(2) As for those violations referred to in
para. 1 which have been committed b y
more than one
natural person, the fine or the pecuniary sanction shall be imposed on each natural person separately.
(3) In the cases of a repeated violation under para. 1 the f in e
or the pecuniary sanction s h all
be
at the amount of up to BGN 500.
Art. 8 3.
(amend. -
S G
95/09, in
fo rc e
fro m
01.01.2010) (1 )
A
person w ho
fa ils
to
perform
his/her obligation referred to in
Art. 51, para. 1 to submit an annual business report, or f a ils
to submit it
in
due time, s h all
b e
punished with a
fin e
or with a
pecuniary sanction o f
up to BGN 500, unless it
is
subject to a heavier punishment.
(2) In the cases of a repeated violation under para. 1 the f in e
or the pecuniary sanction s h all
be
at the amount of up to BGN 1000.
Art. 84. (1) A n
employer under a
b asic
employment relationship who fa ils
to perform his/her
obligation to
dete rm in e
th e
an nual
am ount
of
th e
ta x
on
in co m e
orig in atin g
fro m
em plo ym en t
relationships shall be punished with a fine or a pecuniary sanction of up to BGN 500.
(2) In the cases of a repeated violation under para. 1 the f in e
or the pecuniary sanction s h all
be
at the amount of up to BGN 1000.
Art. 85. (1) The violations under th is
Law s h all
b e
established b y
way o f
a n
order made b y
a
revenue authority.
(2) T he
p en alty
warrants sh all
b e
is su ed
b y
th e
Executive Director o f
th e
National Revenue
Agency or by an official duly authorized by him/her.
(3) T he
orders esta b lis h in g
th e
v io la tio ns
sh all
b e
m ad e
an d
th e
p en alty
warrants sh all
b e
issued, challenged and enforced in accordance with the procedure set forth in the Law on Administrative
Violations and Sanctions.
Art. 8 6.
A s
fo r
th e
imposition o f
administrative sanctions, it
is
th e
provisions o f
th e
Law o n
Administrative Violations and Sanctions that shall apply.
Additional provisions
§ 1 . I n t h is L aw :
1. "Bulgaria" o r
"th e
country" sh all
denote th e
R ep ublic
o f
Bulgaria, a n d
w hen
u se d
in
its
geographical meaning, it
sh all
comprise th e
territory in
w hic h
th e
R ep ublic
o f
Bulgaria exercises its
State sovereignty, a s
w ell
a s
th e
continental sh elf
a n d
th e
e x clu siv e
economic a re a
w ith in
w hic h
th e
Republic of Bulgaria exercises sovereign rights in accordance with international law.
2. (amend. ?
SG 82/09) "Residential address" s h all
denote the address within the meaning of §
1, item 3 of the Supplementary Provision of the Law on Bulgarian Personal Documents.
3. "Place of business activity" s h all
denote a place of business activity within the meaning of §
1, item 5 of the Supplementary Provisions of the Tax Insurance Procedure Code.
4. "Establishment" sh all
denote a n
establishment w ith in
th e
m ean in g
o f
§
1 ,
ite m
7
o f
th e
Supplementary Provisions of the Tax Insurance Procedure Code.
5. "Dividend" shall denote:
Z L Q F R P H R U L J L Q D W L Q J I U R P V K D U H V
b) income originating either from shareholding, in clu din g
th e
shareholding in
unincorporated
companies, or from other rights treated as income from shares;
c) concealed distribution of profit.
6. "Liquidation share" shall denote:
Z
a
liquidation share w ith in
th e
meaning o f
th e
Commercial Law, in clu din g
th e
share o f
th e
property allotted to a partner upon the winding up of a partnership or a limited partnership;
b) th e
pecuniary equivalent o f
th e
property share, th is
equivalent b ein g
allotted to
a
partner
upon the termination of his/her membership in the company;
c) th e
re sp ectiv e
sh are
co ntr ib utio n
allo tte d
upon
th e
te rm in atio n
of
m em bers h ip
in
a
cooperative society or upon the winding up of a cooperative society;
d) the property transferred in
the process o f
transformation b y
transfer o f
the sole S U R S U L H W R U ? V
property in accordance with the procedure set forth in Art. 265 of the Commercial Law;
e) the income that has the nature of a share under items Z
through "d" upon the winding up of
a commercial company/cooperative so cie ty
o r
u pon
th e
termination o f
membership in
a
commercial
company/cooperative society abroad.
7. "Interest" sh all
d en ote
th e
in co m e
o rig in atin g
fro m
an y
ty pe
o f
re ceiv ab le s
fo r
a
d eb t,
regardless to
whether th e
debt is
secured b y
w ay
o f
a
mortgage o r
b y
w ay
o f
a
c la u se
providing fo r
participation in
th e
G H E W R U ? V
profit, in clu din g
th e
interest o n
b an k
deposits a n d
th e
in co m e
(bonuses)
from bonds and debentures.
8. (s u ppl.
?
SG
113/0 7,
in
fo rc e
fro m
01.01.2008) "F ra n ch is e ",
"fa cto rin g",
"c o nceale d
distribution o f
profit", D X W K R U ? V
a n d
lic en ce
remuneration" a n d
"remuneration fo r
te ch nic al
services"
shall denote the respective terms within the meaning of the Law on Corporate Income Taxation.
9. "Market p ric e"
sh all
denote th e
m ark et
p ric e
w ith in
th e
m ean in g
o f
§
1 ,
ite m
8
o f
th e
Supplementary Provisions of the Tax Insurance Procedure Code.
10. "Works o f
a rt,
o bje cts
fo r
collections a n d
antiquities" sh all
denote th e
respective te rm s
within the meaning of the Value Added Tax Law.
11. (amend. -
SG 106/08, in
force from 01.01.2009) "Disposition of f in an cia l
instruments" for
the purpose of Art. 13, Para 1, Item 3 means the transactions:
a) of quotas of collective investment schemes, shares and rights, effected on a regulated market
in
the sense of Art. 73 of the Law on Markets of Financial Instruments; rights for the purpose of the first
sentence m ean s
th e
securities e n titlin g
to
subscription to
a
c erta in
n um ber
o f
sh are s
in
relation to
a
decision for increasing the capital;
b) concluded u nder
th e
conditions an d
o rd er
o f
th e
repurchase fro m
co lle ctiv e
in vestm en t
schemes, admitted to
b e
m ad e
a v aila b le
to
th e
p ublic
in
th e
country o r
another Member State o f
th e
European Union or a country - party to the Agreement on the European Economic Area;
c) concluded under the conditions a n d
order fo r
auctions under Chapter Eleven, Section II
o f
the Law on P ublic ly
A vaila b le
Securities, or transactions o f
identical type in
another Member State o f
the European Union or a country - party to the Agreement on the European Economic Area.
12. (amend. -
S G
106/08, in
fo rc e
fro m
01.01.2009) "Additional voluntary insurance" sh all
denote the insurance referred to in Part Two, Sections Three and Four of the Social Insurance Code, and
also the voluntary insurance carried out according to the legislation of a Member State of the European
Union or
a
co untr y
-
party
to
th e
Agreement on
th e
European E co nom ic
A re a,
by
an
in stitu tio n
performing activ itie s
d ir e ctly
re la te d
to
th e
p en sio n
in su ra n ce
o r
to
th e
in su ra n ce
fo r
p ro fe ssio nal
qualification and unemployment.
13. (amend. - SG 106/08, in
force from 01.01.2009) "Voluntary Health Insurance" s h all
denote
the insurance referred to
in
Chapter Three o f
th e
L aw
o n
H ealth
Insurance, a n d
a ls o
th e
a ctiv ity
o f
voluntary health insurance carried out according to the legislation o f
a
Member State o f
the European
Union or
a
co untr y
-
party
to
th e
Agreement on
th e
European E co nom ic
A re a,
by
an
in stitu tio n
performing voluntary (additional) health insurance activity.
14. (amend. -
SG 106/08, in
force from 01.01.2009) " L if e
insurance" s h all
denote the various
types o f
insurance referred to in
Section I,
items 1
and 3
o f
Supplement No. 1
to the Insurance Code,
concluded b y
insurers, licensed under the Insurance Code, or b y
insurers with a seat in
a Member State
of the European Union or a
country -
party to the Agreement on the European Economic Area, acting
under the conditions of the right of establishment or the freedom of provision of services.
15. "In co m e
fro m
in vestm en ts
of
te ch nic al
re se rv es"
sh all
den ote
th at
portio n
of
th e
net
financial income from th e
investments o f
th e
funds o f
th e
mathematical (premium) reserve w hic h
h as
been distributed by the insurer among the accounts of the insured persons.
16. "Insurance in dem nity "
sh all
denote th e
in su ra n ce
in dem nity
w ith in
th e
m ean in g
o f
th e
Insurance Code.
17. "Rent" shall denote the income received by the owner of agricultural land for the utilization
thereof on the part of a cooperative society registered under the Law on Cooperative Societies.
18. "Lease" shall denote the income received by the lessor by virtue of a lease contract.
19. "Production dividends" s h all
denote the dividends which have been paid to the members of
a cooperative society in
return for those products which they have produced and sold to the cooperative
society.
20. "Consumer d iv id en ds"
sh all
denote th e
d iv id en ds
distributed fo r
th ose
consumer goods
which the members of the cooperative society buy from the latter.
21. (amend. -
S G
95/09, in
force fro m
01.01.2010) "Unprocessed agricultural product" sh all
denote a n y
primary product obtained from plants or a n im als
which is
used in
its
natural form without
having undergone an y
technological processing o r
reprocessing re su ltin g
in
p hysic al
an d
ch em ic al
changes in the composition thereof.
22. (revoked - SG 106/08, in force from 01.01.2009)
23. (revoked - SG 106/08, in force from 01.01.2009)
24. (s u ppl.
-
SG
106/0 8,
in
fo rc e
fro m
01.01.2009; am en d.
?
S G
32/0 9,
in
fo rc e
fro m
01.01.2010) "Medical treatment establishments" shall mean the establishments referred to in the Law for
the Medical Establishments.
25. "Donation in
favour o f
culture" s h all
denote th e
fre ely
provided a id
under th e
conditions
and in accordance with the procedure set forth in the Law of Patronage.
26. "Employment relationships" shall denote:
Z O H J D O U H O D W L R Q V K L S V Z L W K H P S O R H H V X Q G H U W K H / D E R X U & R G H
b) legal relationships with c iv il
servants, as well as legal relationships between the Minister of
Defence a n d
the Minister o f
the Interior or o ffic ia ls
authorized b y
the respective Minister, o n
the one
part, and the employees in the respective Ministries, on the other part;
c) (s u ppl.
?
S G
6 4/0 7)
th e
le g al
re la tio nsh ip s
w ith
th e
m em bers
o f
th e
S upre m e
Ju dic ia l
Council, the head inspector and the inspectors in
the Inspection Office of the Supreme Judicial Council
the judges, p ublic
prosecutors, investigators, administrative managers a n d
th e
deputies thereof in
th e
judiciary bodie s,
S ta te
ex ecu tiv e
magistrates, th e
en tr y
ju dges
an d
th e
co urt
em plo yees
under
th e
Judiciary Law, as well as the legal relationships under the Law on the Constitutional Court;
d) th e
le g al
re la tio nsh ip s
betw een
th e
B ulg aria n
Orthodox C hurc h
or
an y
oth er
re lig io n
registered u nder
th e
L aw
o n
R elig io ns,
o n
th e
o ne
p art,
an d
th ose
o f
its
em plo yees
w ho
h av e
an
ecclesiastical rank, on the other part;
e) th e
le g al
relationships w ith
persons re ceiv in g
in co m e
originating fro m
o ffic es
w hic h
a re
elective by virtue of law;
f) (amend. ?
SG 113/07, in
force from 01.01.2008) the le g al
relationships connected with the
employing o f
workforce o n
th e
p art
o f
a
fo re ig n
person, o n
condition th at
th e
performance o f
th e
workforce s h all
b e
provided in sid e
the territory o f
the country, a s
w ell
a s
le g al
relations connected to
employing of workforce on the part of a local natural person by a foreign person, the performance of the
workforce taking place outside the territory of the country;
g) (new ?
SG 113/07, in force from 01.01.2008) legal relations between an employer referred to
in
ite m
27
an d
a
B ulg aria n
or
fo re ig n
natu ra l
pers o ns,
pro vid ed
th at
th e
sa id
re la tio ns
are
b ein g
established under a contract for deploying staff between the employer and a third party;
h) (new ?
SG 113/07, in
force from 01.01.2008) legal relations under management and control
contracts, including the ones with the members of managing and control bodies of undertakings.
i) (new -
SG 95/09, in
force from 01.01.2010) le g al
relations, regardless the grounds o f
their
occurrence, w ith
partners a n d
associated cooperators, a n d
w ith
shareholders, holding more than 5
p er
cent of
th e
cap ita l
of
th e
jo in t
sto ck
co m pan y,
fo r
w ork in g
pers o nally
in
th e
co m pan ie s
an d
cooperatives, where they are partners, associated cooperators or shareholders.
27. (suppl. ?
SG 113/07, in
force from 01.01.2008) "Employer" s h all
denote a n y
local person,
or any foreign person who performs activities using a place of business activity or establishment within
the country, or a commercial representative office as referred to in the Law on Fostering the Investments
on condition that the s a id
person employs natural persons under employment relationships or who is
a
party to contract for providing personnel by a foreign person.
28. "Craftsmanship" sh all
den ote
th e
manufacture of
artic le s
or
th e
pro vis io n
of
se rv ic es
performed b y
a
natural person who is
registered in
the Register of Craftsmen, and is
not registered as a
sole proprietor.
29. "Freelance practitioners" s h all
denote the following ones: expert accountants; consultants,
auditors; attorneys-at-law; notaries; private executive magistrates; jurors; court experts and prosecuting
magistracy experts; lic en se d
assessors; representatives o f
in dustr ia l
property; sp ecia lis ts
in
m ed ic in e;
translators a n d
interpreters; architects; engineers; technical managers; eminent figures in
arts, culture,
education and science; insurance agents; other natural persons for whom a ll
of the following conditions
are present:
Z W K H S H U I R U P S U R I H V V L R Q D O D F W L Y L W L H V D W W K H L U R Z Q H [ S H Q V H
b) they are not registered as sole proprietors;
c) they are self-insured persons within the meaning of the Social Insurance Code.
30. "Relationships other th an
th e
employment ones" s h all
denote a ll
le g al
relationships, w ith
the exception of those under items 26, 28 and 29, b y
virtue of which the obtaining of a specific result is
due by a natural person who is not a sole proprietor.
31. "Intellectual property" s h all
denote the ownership o f
works o f
science, arts and literature,
including feature f ilm s
and TV f ilm s
and records of TV and radio broadcasts, as w ell
as the ownership
of p ate n ts ,
trademarks, in dustr ia l
d esig ns
an d
u se fu l
m odels ,
d ra w in gs,
p la n s,
se cre t
fo rm ula e
an d
processes, and also information regarding industrial, commercial and scientific expertise (know-how).
32. (a m en d.
?
SG
113/0 7,
in
fo rc e
fro m
01.01.2008) "E quity
of
th e
esta b lis h m en t"
in
connection w ith
th e
application o f
A rt.
3 3,
para. 1 1
sh all
denote th e
d if fe re n ce
between th e
b ala n ce
sheet value of the assets and the balance sheet value of the liabilities of the establishment.
33. "Enterprise" s h all
denote a n
establishment w ith in
the meaning o f
the Accounting Law, a s
well as a
commercial representative office under the Law on Fostering the Investments and the Mutual
Insurance Fund, the latter being set up on the grounds of Art. 8 of the Social Insurance Code.
34. "Tax treaty" shall denote the following:
Z D W U H D W D L P H G D W S U H Y H Q W L Q J W K H G R X E O H W D [ D W L R Q R I L Q F R P H
b) a treaty aimed at preventing the double taxation of income and property;
c) a
treaty aimed at preventing both the double taxation of income and the evasion of taxation
of income;
d) a
treaty aimed at preventing both the double taxation of income and the evasion of taxation
of income and property;
e) treaties and contracts aimed at preventing the double taxation in
the f ie ld
of international air
transport regardless to whether the said treaties and contracts are inter-State ones or intergovernmental
ones.
35. " T ax
in put"
sh all
denote th e
rig ht
e n jo yed
under th e
conditions sp ecif ie d
in
th is
L aw
to
recognition o f
a n
amount o f
th e
ta x
p aid
abroad o n
th e
taxable S H U V R Q ? V
profit o r
income originating
from sources within the country or abroad.
36. "Repeated vio la tio n"
sh all
den ote
a
vio la tio n
co m mitte d
w ith in
a
perio d
of
one
year
following the effective date o f
a
penalty warrant b y
w ay
o f
which the violator was sanctioned fo r
the
same type of violation.
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
U H Y R N H G ? 6 * L Q I R U F H I U R P
47. "Average weighted price" s h all
denote the price which is
calculated in
accordance with the
following formula:
where:
AWP is the average weighted price;
AP1,2...n is the price of acquisition of the respective financial asset;
NM1,2...n is
th e
n um ber
o f
those fin an cia l
assets w hic h
h av e
b een
acquired a t
th e
p ric e
o f
AP1,2...n.
U H Y R N H G ? 6 * L Q I R U F H I U R P
49. "Savings income" shall denote the following:
Z
the income originating from any type of receivables for a debt, regardless to whether the debt
is
secured b y
way of a mortgage or b y
way of a clause providing for participation in
the G H E W R U ? V
profit,
including the interest on bank deposits, the interest on and the discount from bonds and debentures, a s
well a s
th e
income fro m
th e
s a le
o f
bonds a n d
debentures (premiums a n d
profit); th e
indemnities fo r
delayed payments shall not be regarded as savings income;
b) the income originating from interest, that income being realized or capitalized in
the course
R I W K H V D O H W K H U H L P E X U V H P H Q W R U U H Y H U V H E X R X W R I W K H U H F H L Y D E O H V I R U D G H E W D V U H I H U U H G W R L Q L W H P Z
c) the income referred to in
items Z
and " b "
that h as
been paid either directly or through a n
agent-payer and has been distributed by:
ZZ D F R O O H F W L Y H L Q Y H V W P H Q W V F K H P H W K D W K D V E H H Q O L F H Q V H G L Q D Q R W K H U 0 H P E H U 6 W D W H
bb) an
agent-payer certif ie d
in
th e
M em ber
S ta te
of
his /h er
re sid en ce
an d
eq ualle d
to
a
collective investment scheme;
cc) a collective investment scheme established in a third State;
d) the income originating from s a le ,
reimbursement or reverse buyout o f
stocks and shares in
the e n titie s
referred to
in
ite m s
Z Z
"b b"
a n d
"c c"
o n
condition th at
th e
sa id
e n titie s
in vest,
e ith er
directly or indirectly (through entities referred to in
items Z Z
"bb" and "cc") more than 40 percent of
W K H L U D V V H W V L Q U H F H L Y D E O H V I R U G H E W V D V U H I H U U H G W R L Q L W H P Z
50. "Agent-payer" sh all
den ote
an y
pers o n
w ho
carrie s
out
busin ess
activ itie s
in sid e
th e
territory o f
th e
Kingdom o f
B elg iu m ,
th e
R ep ublic
o f
Austria o r
th e
Grand D uch y
o f
Luxembourg,
paying savings income to local natural persons under this Law, including those cases in
which the said
person is an intermediary in the payment of the income.
51. (new ?
SG 113/07, in
force from 01.01.2008) "Immovable housing property" in
relation to
the application o f
A rt.
1 3,
p ara
1 ,
ite m
1
sh all
m ean
re al
estate, w hic h
m ay
b e
u se d
fo r
re sid en tia l
purposes by the moment of its sale or exchange.
52. (new -
SG 95/09, in
force from 01.01.2010) ? % D V L F
employment le g al
U H O D W L R Q V K L S ?
is
the
employment legal relationship under item 26, which has occurred first in the time.
53. (new -
SG 95/09, in
force from 01.01.2010) ? $ Q Q X D O
business U H S R U W ?
is
the report under
Art. 20, par. 4 of the Law for the statistic.
54. (new - SG 95/09, i n
force from 01.01.2010) ? 0 D U L Q H
S H U V R Q ?
is a natural person, occupying
a position under an employment legal relationship as a person of a crew of a sea vessel, entered into the
register o f
th e
v esse ls
o f
an
European U nio n
M em ber
S ta te ,
re g ard le ss
w heth er
it
is
sh ore sid e
o r
shipboard, hold in g
a
qualif ic atio n
certif ic ate
an d
a
certif ic ate
of
ad van ced
an d/o r
sp ecia l
tr a in in g,
granted pursuant to the provisions of Art. 87, par. 1 of the Code of Commercial Navigation.
§ 2 .
T his
Law introduces th e
provisions o f
th e
Council Directive ? ( &
o n
th e
general
scheme o f
taxation, ap plic ab le
to
mergers, restructuring, tr a n sfe r
o f
asse ts
an d
ex ch an ge
o f
sh are s
regarding companies from different Member States, and the Council Directive 2003/48/EC on taxation
of savings income in the form of interest payment.
Transitional and concluding provisions
§ 3. The Law on Taxation of the Income of Natural Persons (prom., SG, No. 118 of 1997, No.
35 of 1998 - Decision No. 6 of the Constitutional Court of the year 1998, am., Nos. 71 and 153 of 1998,
Nos. 50, 103 and 111 of 1999, No. 105 of 2000, No. 110 of 2001, Nos. 40, 45, 61 and 118 of 2002, Nos.
42, 67, 95 and 112 o f
2003, Nos. 36, 37, 53, 70 and 108 o f
2004, Nos. 43, 102, 103 and 105 o f
2005,
Nos. 17 and 63 of 2006) is repealed.
§ 4. (1) A person who is
a basic employer within the meaning of the repealed Law on Taxation
of th e
Income o f
Natural Persons a s
a t
3 1
December 2006, sh all
recalculate, in
accordance w ith
th e
procedure se t
fo rth
in
th e
sa id
L aw ,
th e
fin al
ta x
on
th e
in co m e
orig in atin g
fro m
em plo ym en t
relationships, as well as the f in al
tax on legal relationships equalled thereto, on the grounds of the annual
basis of taxation, until 31 January 2007.
(2) As for the difference in
the tax in
connection with the recalculation referred to in
para. 1, it
is the provisions of Art. 49, paras. 5, 6 and 7 that shall apply.
(3) T he
em plo yers
w ith in
th e
m ean in g
o f
th e
re p eale d
L aw
o n
Taxation o f
th e
In co m e
o f
Natural Persons s h all
is su e
th e
certificate referred to in
Art. 3 8
o f
the s a id
Law regarding the income
originating from employment relationships and received in the course of the year 2006.
§ 5. A s
for the taxable income originating from employment relationships within the meaning
of th is
Law that is
due but has not been paid prior to the effective date o f
this Law, the amount o f
the
advance tax due shall be determined in accordance with Art. 42, para. 3.
§ 6. (1) The income that was received prior to the effective date of this Law, and is
other than
the income originating from employment relationships, and is subject to taxation under the repealed Law
on Taxation o f
the Income o f
Natural Persons, and the date o f
receiving the income under th is
Law is
later than 1 January 2007, shall be deducted when determining the taxable income under this Law.
(2) The portion o f
the taxable income that, on the grounds o f
Art. 22, para. 2
o f
the repealed
Law on Taxation of the Income of Natural Persons, was not taken into consideration when determining
the basis of taxation within the meaning of the said Law, s h all
be declared as taxable income under this
Law in
the course of subsequent years of taxation until the depletion of the remainder of years referred
to in Art. 22, para. 2 of the repealed Law on Taxation of the Income of Natural Persons.
§ 7. (1) The income received in
the course of the year 2006 that is
subject to being declared in
accordance w ith
th e
procedure se t
fo rth
in
th e
repealed L aw
o n
Taxation o f
th e
Income o f
Natural
Persons shall be declared not later than 15 April 2007 by way of submission of the tax return referred to
in Art. 41 of the said Law.
(2) Those enterprises w hic h
in
th e
y ear
2006 p aid
to
natural persons in co m e
other th an
th e
income under employment relationship and pensions s h all
submit the information referred to in
Art. 57
of the repealed Law on Taxation of the Income of Natural Persons not later than 15 April 2007.
§ 8. (1) The tax due on income received in
the year 2006 s h all
b e
contributed within the time
limits and in
accordance with the procedure set forth in
the repealed Law on Taxation of the Income of
Natural Persons.
(2) T he
ta x
referred to
in
p ara .
1
sh all
b e
su bje ct
to
th e
ta x
re lie f
in
accordance w ith
th e
conditions and procedure set forth in the repealed Law on Taxation of the Income of Natural Persons.
§ 9. The standard forms of the annual tax return for the year 2006 as well as the record for the
year 2006 under Art. 5 7
o f
th e
repealed L aw
o n
Taxation o f
th e
Income o f
Natural Persons s h all
b e
approved not later than 10 January 2007 by way of an Ordinance issued by the Minister of Finance, and
the said Ordinance shall be promulgated in the State Gazette.
§ 10. The standard forms o f
the account o f
the paid amounts and the certificate referred to in
Art. 45, para. 4, and the certificate referred to in
Art. 58, as well as the tax return referred to in
Art. 59,
para. 1
sh all
b e
approved n ot
la te r
th an
3 1
December 2 006
b y
w ay
o f
a n
Ordinance is su ed
b y
th e
Minister of Finance. The standard forms and the Ordinances shall be promulgated in the State Gazette.
§ 1 0a.
(n ew
?
S G
41/09, in
fo rc e
fro m
01.07.2009) (1 )
T he
persons w ith
ty pe
a n d
le v el
o f
disabilities o f
50 or above 50 percent determined in
a
v alid
decision o f
a
competent authority s h all
b e
entitled to tax relief for persons with reduced working ability under the order of this Law.
(2) The persons, who have been assigned by 31 December 2009 a level of permanently reduced
working a b ility
for a lifetime under the order of the Law on the Health, and the persons who have been
assigned a
le v el
o f
reduced working ab ility
fir
a
lif e tim e
b y
v ir tu e
o f
§
3
o f
th e
Transitional an d
Concluding Provisions o f
th e
L aw
o n
th e
Health, sh all
b e
considered to
h av e
a
determined ty pe
a n d
level of disability for a lifetime.
§ 1 0b.
(n ew
?
S G
49/10, in
fo rc e
fro m
01.07.2010) T he
ta x ab le
in co m e
fro m
la b our
le g al
relations sh all
not
in clu de
th e
paid
remunerations acco rd in g
to
§
22n
of
T ra n sitio nal
an d
Fin al
provisions of the Code of Social Insurance.
§ 11. The words "Law on Taxation o f
the Income o f
Natural Persons" in
the Social Insurance
Code shall be replaced by the words "Law on Taxes on the Income of Natural Persons" (prom., SG, No.
110 of 1999, No. 55 of 2000 ?
Decision No. 5 of the Constitutional Court of the Republic of Bulgaria of
the year 2000, am., No. 64 of 2000, Nos. 1, 35 and 41 of 2001, Nos. 1, 10, 45, 74, 112, 119 and 120 of
2002, Nos. 8, 42, 67, 95, 112 and 114 of 2003, Nos. 12, 38, 52, 53, 69, 70, 112 and 115 of 2004, Nos.
38, 39, 76, 102, 103, 104 and 105 of 2005, Nos. 17, 30, 34, 56, 57, 59, 68 and 82 of 2006).
§ 12. The words "Law on Taxation of the Income of Natural Persons" i n
the Law on Protection
against th e
N oxio us
A ctio n
o f
C hem ic al
Substances an d
Preparations, an d
in
§
1 ,
ite m
1 7
o f
th e
Supplementary P ro vis io n
th ere o f
sh all
b e
re p la ced
b y
th e
words "L aw
o n
T ax es
o n
th e
In co m e
o f
Natural Persons" (prom., SG, No. 10 of 2000;am., No. 91 of 2002, Nos. 86 and 114 of 2003, Nos. 100
and 101 of 2005, Nos. 30 and 34 of 2006).
§ 13. T he
words "Law o n
Taxation o f
th e
Income o f
Natural Persons" in
th e
Law o n
Health
Insurance, an d
in
A rt.
4 2,
p ara s.
1
an d
3 ,
an d
in
§
1 9"d ",
p ara .
5
o f
th e
In te rim
an d
C onclu din g
Provisions thereof s h all
b e
replaced b y
th e
words "Law o n
Taxes o n
th e
Income o f
Natural Persons"
(prom., SG, No. 70 of 1998; am., Nos. 93 and 153 of 1998, Nos. 62, 65, 67, 69, 110 and 113 of 1999,
Nos. 1, 31 and 64 of 2000, No. 41 of 2001, Nos. 1, 54, 74, 107, 112, 119 and 120 of 2002, Nos. 8, 50,
107 and 114 of 2003, Nos. 28, 38, 49, 70, 85 and 111 of 2004, Nos. 39, 45, 76, 99, 102, 103 and 105 of
2005, Nos. 17, 18, 30, 33, 34 and 59 of 2006).
§ 14. The words "Law on Taxation o f
the Income o f
Natural Persons" in
Art. 40, para. 3
and
Art. 41 of the Law on the Integration of disabilitiyped Persons s h all
be replaced b y
the words "Law on
Taxes on the Income of Natural Persons" (prom., SG, No. 81 of 2004; am., Nos. 28, 88, 94, 103 and 105
of 2005, Nos. 18, 30, 33, 37 and 63 of 2006).
§ 15. The words "Law on Taxation of the Income of Natural Persons" in
Art. 2, para. 2 of the
Law on Certain Rights o f
Those Persons Who Have Been Presidents o f
the Republic o f
Bulgaria s h all
be replaced by the words "Law on Taxes on the Income of Natural Persons" (SG, No. 59 of 2003).
§ 1 6.
T he
words "Law o n
Taxation o f
th e
Income o f
Natural Persons" in
§
1 ,
ite m
2
o f
th e
Supplementary Provisions of the Law on Family Allowances for Children shall be replaced by the words
"Law on Taxes on the Income o f
Natural Persons" (prom., SG, No. 32 of 2002; am., No. 120 of 2002,
No. 112 of 2003, No. 69 of 2004, No. 105 of 2005, Nos. 21, 30, 33 and 68 of 2006).
§ 17. The words "Law on Taxation of the Income of Natural Persons" in
Art. 33, para. 2 of the
Law o n
L ocal
E le ctio ns
sh all
b e
re p la ced
b y
th e
words "L aw
o n
T ax es
o n
th e
In co m e
o f
N atu ra l
Persons" (prom., SG, No. 6 6
o f
1995; am., No. 6 8
o f
1995; No. 8 5
o f
1995 ?
Decision No. 1 5
o f
the
Constitutional Court o f
th e
y ear
1995; am., No. 3 3
o f
1996; No. 2 2
o f
1997 ?
Decision No. 4
o f
th e
Constitutional Court of the year 1997; am., Nos. 11 and 59 of 1998, Nos. 69 and 85 of 1999, No. 29 of
2000, No. 24 of 2001, No. 45 of 2002, Nos. 69 and 93 of 2003, No. 28 of 2005, Nos. 17, 24, 30 and 69
of 2006).
§ 18. The words "Law on Taxation of the Income of Natural Persons" in
Art. Z
of the Law
on th e
Election o f
Deputies s h all
b e
replaced b y
th e
words "Law o n
Taxes o n
th e
Income o f
Natural
Persons" (prom., SG, No. 37 of 2001; No. 44 of 2001 ?
Decision No. 8 of the Constitutional Court of the
year 2001; am., No. 45 of 2002, Nos. 28, 32 and 38 of 2005, Nos. 24, 30 and 63 of 2006).
§ 19. The words "Law on Taxation of the Income of Natural Persons" i n
Art. 178, para. 2, item
1 of the Tax Insurance Procedure Code shall be replaced b y
the words "Law on Taxes on the Income of
Natural Persons" (prom., SG, No. 105 of 2005; am., Nos. 30, 33, 34, 59, 63, 73, 82 and 86 of 2006).
§ 20. The words "Law on Taxation of the Income of Natural Persons" in
Art. 10"l", para. 3 of
the Law on the Election of President and Vice President s h all
be replaced b y
the words "Law on Taxes
on the Income o f
Natural Persons" (prom., SG, No. 82 o f
1991; am., No. 98 o f
1991, No. 44 o f
1996,
No. 59 of 1998, Nos. 24, 80 and 90 of 2001, No. 45 of 2002, No. 28 of 2005, Nos. 24 and 63 of 2006).
§ 21. This Law takes effect on 1
January 2007, with the exception of §
10, which takes effect
on the day on which the Law is promulgated in the State Gazette.
The Law was adopted by the 40th National Assembly on 9 November 2006 and has the official
seal of the National Assembly affixed thereto.
Chairperson of the National Assembly:
Georgi Pirinski
Transitional and concluding provisions
TO THE LAW ON THE MARKETS OF FINANCIAL INSTRUMENTS
(PROM. - 52/07, IN FORCE FROM 01.11.2007)
§ 27. (1) This Law s h all
enter into force from 1
November 2007 except §
7, Items 6, 7, 8, 18,
19, 22 ?
24, 26 ?
28, 30 ?
40, Item 44, Letter "b", Items 47, 48, Item 49, Letter "a", Items 50 ?
62, 67,
68, 70. 71, 72, 75, 76, 77, Item 83, Letters "a" and "d", Item 85, Letter "a", Items 91, 93, 94, Item 98,
Letter "a", Subletter "aa", second sentence regarding the replacement, Subletter "bb", second sentence
regarding the replacement, Subletter "cc", second sentence regarding the replacement and Subletter "cc",
second sentence regarding the replacement, Item 99, Letters "d" and "e", Item 101, Letter "b" and Item
102, §
8, §
9, Item 4, Letter "a", Items 5 and 7, §
14, Item 1 and §
19 which s h all
enter into force three
days after the promulgation of the Law in the State Gazette.
(2) Paragraph 7, Item 6, 7 and 8 shall apply by 1 November 2007.
Transitional and concluding provisions
TO THE LAW OF AMENDMENT AND SUPPLEMENTATION OF THE LAW ON TAXES ON
THE INCOME OF NATURAL PERSONS
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 48. (1) B y
a
f in al
tax referred to in
Art. 28 s h all
be charged the gross amount of the taxable
income from Life assurance, acquired till
the date of amendment of the insurance contract, with regards
to which has been used tax r e lie f
pursuant to the repealed Law for Taxation of the Income of Physical
Persons (prom. SG 118/97), in a contract with regards to which tax relief as per Art. 19 may not be used.
(2) In co m e
re fe rre d
to
in
Art.
38,
para
8,
co rre sp ondin g
to
th e
part
of
th e
contributions/premiums, regarding which tax relief has not been used according to the repealed Law for
Taxation of the Income of Physical Persons, shall not be subject to a final tax.
§ 4 9.
R elie f
fo r
p erm an en tly
reduced cap acity
to
w ork
stip ula te d
b y
a
la w
sh all
b e
fo r
a
lifetime, in
case the fixed term i n
the expert decision of TEMC/NEMC has not expired by 31 December
2004 and the person has reached 65 years of age before the said date or within the term laid down in the
expert decision.
§ 50. (1) Income referred to i n
Art. 33, para 3 with regards to which the transfer date is prior to
1 January 2007, shall be considered acquired on the date, determined in Art. 11, para 1.
(2) Income referred to in Art. 33, para 11 with regards to which the date of the judicial decision
for transfer is
prior to 1
January 2007, s h all
be considered acquired on the date, determined in
Art. 11,
para 1.
§ 51. (1) A s
regards to lia b ilitie s
related to fin al
annual (patent) tax, which have occurred till
the 31st of December inclusive, the provisions of the Law on Taxes on the Income of Natural Persons or
of the repealed Law for Taxation of the Income of Physical Persons s h all
be applied, provided that the
establishing, se cu rin g
an d
co lle ctio n
th ere o f
sh all
be
carrie d
out
purs u an t
to
th e
T ax -in su ra n ce
Procedure Code by the bodies of the National revenue Agency.
(2) Proceedings for establishing, securing and collection o f
lia b ilitie s
for fin al
annual (patent)
tax, which have started by 31 December 2007, shall be completed by the bodies of the National revenue
Agency.
§ 5 2. T he L aw s h all e n te r i n to f o rc e f ro m 1 J a n uary 2 008.
Transitional and concluding provisions
TO THE LAW OF AMENDMENT AND SUPPLEMENTATION OF THE LAW ON TAXES ON
THE INCOME OF NATURAL PERSONS
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 19. In the record under Art. 73, Para 1 for paid income to natural persons for the taxable 2008
shall be entered also the income paid during the same year under Art. 38, Para 1, where this income are
not entered in a record for preceding years of taxation.
§ 2 0. T he L aw s h all e n te r i n to f o rc e f ro m 1 J a n uary 2 009.
Transitional provisions
W R W K H / D Z R Q ( [ H F X W L R Q R I 3 H Q D O W L H V D Q G ' H W H Q W L R Q 3 U R P ? 6 * L Q I R U F H I U R P
§ 13. The Law shall enter into force from 1 June 2009, except for the provision of Art. 43, para
3, w hic h s h all e n te r i n to f o rc e t h re e y ears a fte r t h e p ro gra m me r e fe rre d t o i n § 1 1 h as b een a d opte d .
Concluding provisions
TO THE LAW ON AMENDMENT AND SUPPLEMENTATION OF THE LAW ON TAXES ON
THE INCOME OF NATURAL PERSONS
(PROM. - SG 32/09, IN FORCE FROM 01.01.2010)
§ 6 . T he L aw s h all e n te r i n to f o rc e f ro m t h e 1 st o f J a n uary 2 010.
Concluding provisions
TO THE LAW OF DEFENCE AND ARMED FORCES OF THE REPUBLIC OF BULGARIA
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 4 6. T he L aw s h all e n te r i n to f o rc e f ro m t h e d ay o f i ts p ro m ulg atio n i n t h e S ta te G azette .
Transitional and concluding provisions
TO THE LAW ON AMENDMENT AND SUPPLEMENTATION OF THE LAW ON THE
HEALTH
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 9 6.
T his
L aw
sh all
enter in to
force fro m
th e
d ay
o f
its
promulgation in
th e
State Gazette,
except for:
1. paragraphs 3, 5, 6, and 9, which shall enter into force from 1 January 2009;
2. paragraphs 26, 36, 38, 39, 40, 41, 42, 43, 44, 65, 66, 69, 70, 73, 77, 78, 79, 80, 81, 82, 83, 88,
89 and 90, which shall enter into force from 1 July 2009;
3. paragraph 21, which shall enter into force from 1 Jun 2010.
Transitional and concluding provisions
TO THE LAW ON AMENDMENT AND SUPPLEMENTATION OF THE LAW FOR THE
INCOME TAX OF NATURAL PERSONS
(PROM. ?
SG 95/09, IN FORCE FROM 01.01.2010; AMEND. ?
SG 99/09, IN FORCE FROM
01.01.2010)
§ 24. Where income under §
1, item 26, item ? L ?
of the additional provisions is
calculated, but
not paid up to 31 December 2009, the amount of the due advance tax shall be determined pursuant to the
provision o f
A rt.
4 2
b ase d
o n
th e
m onth ly
b asis
o f
taxation, calculated fro m
th e
p aid
in co m e
in
th e
respective month.
§ 2 5.
A rtic le
5 1
sh all
ap ply
als o
to
th e
an nual
b usin ess
report fo r
2 009.
A nnual
fin an cia l
statements for 2009 and audit reports thereto shall not be submitted to the National Revenue Agency.
§ 2 6.
R em is sio n
o f
ta x
u nder
A rt.
4 8,
p ar.
6
sh all
ap ply
fo llo w in g
is su an ce
o f
a
p ositiv e
decision b y
the European Commission for compatibility with the regulations in
the f ie ld
of state grants.
Provided that the European Commission issues a positive decision by 31 March 2011, the remission may
apply a ls o
fo r
2010. Remission o f
advance deposits o f
th e
ta x
o f
agricultural producers sh all
n ot
b e
D O O R Z H G E W K H G D W H R I W K H ( X U R S H D Q & R P P L V V L R Q ? V S R V L W L Y H G H F L V L R Q
§ 27. The administrator of a state grant under Art. 48, par. 6 shall be the Minister of Agriculture
and Foods. The Minister o f
Agriculture and Food s h all
notify the European Commission following the
order and the procedures, provided in the Law for the State Grants.
§ 28. The ta x
o n
th e
a n nual
b asis
o f
taxation fo r
th e
income from business activity a s
a
s o le
trader shall be remitted pursuant to the provision of Art. 48, par. 6 not later than 31 December 2013.
§ 2 9.
T he
ad van ce
ta x
o n
in co m e
fro m
em plo ym en t
le g al
re la tio nsh ip
o f
m arin e
persons,
calculated afte r
31
D ecem ber
2009
fo r
pre ced in g
ta x
years ,
sh all
be
dete rm in ed
purs u an t
to
th e
provisions of Art. 42, par. 4 applicable as of the date of calculation of the income.
§ 29a. (new ?
SG 99/09, in force from 01.01.2010) In the yearly tax statement under Art. 50 for
2009 shall be indicated also any money loans under Art. 50, Para 1, Item 5.
§ 3 0. T he l a w s h all e n te r i n to f o rc e f ro m J a n uary 1 , 2 010.
Transitional and concluding provisions
TO THE LAW ON THE STATE BUDGET OF THE REPUBLIC OF BULGARIA FOR 2010
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 84. This Law s h all
enter into force from 1 January 2010, except §
80, which s h all
enter into
force from 15 December 2009.
Appendix to Chapter Seven
U H Y R N H G ? 6 * L Q I R U F H I U R P
Relevant acts from European legislation:
COUNCIL DIRECTIVE 2003/48/EC of 3 June 2003 on taxation of savings income i n
the form
of interest payments
COUNCIL DIRECTIVE 2005/19/EC of 17 February 2005 amending directive 90/434/eec 1990
on the common system of taxation applicable to mergers, divisions, transfers of assets and exchanges of
shares concerning companies of different member states
Transitional and concluding provisions
TO THE LAW OF DEFENCE AND ARMED FORCES OF THE REPUBLIC OF BULGARIA
3 5 2 0 ? 6 * , 1 ) 2 5 & ( ) 5 2 0
§ 155. The Law s h all
enter into force from th e
date o f
its
promulgation in
th e
State Gazette,
except for the provision of §
74, which shall enter into force from March the 1st 2010, and §
135, which
shall enter into force from January the 1st 2011.