It has been five years now that Accounting Agency “Boichev” LTD has actively participated together with BGP Services in the consultation and administration of business operations of companies and natural persons, investing in real estates in the country. Our attention is directed to the protection of the interests of BGP’s clients by complying with the tax and accounting legislation in Bulgaria.
The tax policy in the country and the accounting activities related to it are regulated by the Ministry of Finances and its structures. The statutory requirements in this area are governed by the main law in the country – the Constitution, the National Accounting Standards, the International Accounting Standards and all European directives after the accession of Bulgaria to the European Union as of 1st January 2007.
The procedure for calculating, taxing and declaring the incomes made by local and foreign legal entities is provided for by the Corporate Income Taxation Act. The tax period for determination of the taxes due by taxable persons is the calendar year, regardless of the date of incorporation of the company. All persons subject to tax, no matter whether they have done any business during the respective year, are obliged, by 31 March of the following calendar year, to submit an annual tax return as per the form, validated by the Minister of Finances, together with all appendices required by the law.
The law stipulates who and under what conditions may draw up the annual tax return, by setting out a number of requirements as to their education, length of service holding specified positions etc. In order for an annual tax return to be drawn up, the taxable subject has to have its accounts kept in which there have to be currently reflected all income, expenditure and bank documents pertaining to the business operations. A taxable person who does not submit the tax return provided for by that law, does not submit it within the specified term, who does not declare any data or who declares false information, shall be imposed a property sanction to the amount from 500 to 3000 leva. In case of a second offence, the property sanction is determined to 1000 to 6000 leva. A sanction shall also be imposed on a person who submits an annual tax return, but fails to submit any appendices to it or who declares untrue data or circumstances in these appendices. In this case, the property sanction is from 100 to 1000 leva. In case of a second offence, the fine is from 200 to 2000 leva.
The information system of the National Revenue Agency strictly follows whether companies submit their annual tax returns. Every day, information about the newly registered companies is sent to this system by the National Registry Agency and all county courts in the country. If a property sanction is imposed on а taxable person by the National Revenue Agency, it is first collected from the money available on the bank accounts of the person and if there are no funds available, from the company assets – movable or immovable property.
Taxation of foreign natural persons is regulated in the Personal Income Tax Act. Taxing and declaring is carried out depending on the type of income, as the law provides for different terms and periods for submitting the tax return.
For more information please contact www.bgp.bg