Applicable to the annual taxation and declaring of income received in 2011 are the provisions of the Personal Income Tax Act (PITA)
Subject to tax on the common annual tax base is the income of individuals received from:
- employment relations;
- economic activity different from economic activity as sole proprietor and other economic activity as per Art. 29a of the PITA;
- rent or any other compensated granting of the use of rights or property;
- transfer of rights or property;
- income from other sources.
Note: Income from other economic activity as per Art. 29a of the PITA is income from economic activity of individuals registered as tobacco producers and agricultural producers, which income by law or at individuals’ discretion is taxed following the procedure for taxation of income from sole proprietors’ economic activity.
The tax on the common annual tax base shall be assessed by multiplying the common annual tax base by the 10% tax rate.
The income from economic activity as a sole proprietor and the income from other economic activity as per Art. 29a of the PITA shall be taxed separately, with tax on the annual tax base. The tax rate is 15 per cent.
The deadline for submission of the annual tax return as per Art. 50 of the Personal Income Tax Act for 2011 is May 2nd, 2012.
The deadline for paying the declared in the annual tax return tax for additional payment is also May 2nd, 2012.
See more information about the Annual Tax Return as per Art. 50 of the PITA with annexes and instructions about its submission.
Important! The individuals, who submit their annual tax return by February 10th, 2012, are eligible to a 5% discount on the paid within the same deadline part of the tax for additional payment under the annual tax return.
The individuals, who submit their annual tax return online by May 2nd, 2012, are eligible to a 5% discount on the paid within the same deadline part of the tax for additional payment under the annual tax return, provided that they don’t use the 5% discount stipulated for the February 10th deadline.
Attention! Discounts are given if the individuals, who must pay tax in advance, have paid the tax due in full amount and within the statutory deadlines.
The annual tax return shall be submitted by resident and non-resident individuals who have received income in 2011:
• which is subject to taxation on the common annual tax base including for income from employment relations pursuant to § 1, item 26, letters “f” and “I” of the Supplementary Provisions of the Tax and Social Security Procedure Code (TSSPC);
• which is subject to taxation with tax on the annual tax base for the income from economic activity as a sole proprietor and income from other economic activity as per Art. 29a of the PITA;
• which is subject to taxation with patent tax under the Local Taxes and Fees Act (LTFA).
The resident individuals shall also be obliged to declare:
1. Income received during the year from a source abroad, from dividends, liquidation quotas, as well as taxable income from supplementary voluntary insurance, from voluntary health insurance, and from life insurance.
2. Shares owned and shareholdings in companies, place of business, fixed establishment and immovable properties abroad.
3. Extended loans/borrowings, as follows:
a) The outstanding balance of the loans extended in 2011, if their total amount exceeds BGN 10 000;
b) The outstanding balances as of the end of 2011 of loans extended within the same year as well as within the previous 5 tax years, if the total amount of these balances exceeds BGN 40 000;
c) The outstanding balance of loans received in 2011, if their total amount exceeds BGN 10 000, excluding bank loans received by credit institutions as per the Credit Institutions Act;
d) Outstanding balances as of the end of 2011 of loans received within the same year as well as within the previous 5 tax years, excluding bank loans received by credit institutions as per the Credit Institutions Act, if the total amount of these balances exceeds BGN 40 000.
Attention! Non-resident individuals, who are considered resident individuals for tax purposes of the EU member states or other countries, which are part of the European Economic Area Agreement, are entitled to choose to recalculate the final income tax pursuant to Art. 37 of the PITA. The choice shall be exercised by submitting an annual tax return pursuant to Art. 50 of the PITA where the tax return includes all other charges and incomes, subject to declaring by the non-resident individual.
Cases when annual tax return shall not be submitted:
Free from submitting annual tax return are individuals who have received in 2011 only:
1. income from employment relationship when as of December 31st, 2011 they have an employer under principle employment relationship who has determined the amount of the annual tax charged for all the income received in the tax year from employment relationship and the total amount of the tax due for the tax year has been deducted prior to January 31st, 2012, and/or
2. income from employment relationship when as of December 31st, 2011 the taxpayers have no employer under principle employment relationship or do have such an employer, but he has not determined the annual amount of the tax on all the income received in the tax year from employment relationship, if all the following conditions are met:
a) the tax on the total annual tax base is equal to the tax on income from employment that was deducted in advance;
b) the taxpayer is not using tax reliefs when submitting the annual tax return,
3. non-taxable income, and/or
4. Income subject to final tax as per the procedures of Chapter Six of the PITA, except for:
- income of resident individuals from dividends, liquidation dividends, supplementary voluntary insurance, voluntary health insurance and from life insurance from sources abroad
- income of non-resident individuals in the cases when they have chosen to recalculate the final tax on incomes pursuant to Art. 37 of the PITA.
The annual tax return shall not be submitted also in case the individual is registered as sole proprietor, but in 2011 has not performed economic activity, has not received other income subject to declaring in the annual tax return, and there are not facts he must declare (real estate abroad, loans received and/or extended, etc.).
Tax returns shall be submitted:
..........personally in the NRA office corresponding to the permanent address of the individual and the sole proprietor; or
..........by postal order with a return receipt. See the addresses and the postal codes of NRA offices or
.........on-site at one of the 414 post offices, where officials from the Bulgarian Posts shall issue the taxpayers reference numbers, or
.........via Internet with an electronic signature.