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.
Deadlines
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,
and/or
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