Subject to final tax on expenses are the following documentary substantiated expenses:
1. Representation expenses related to the activity performed;
2. Social expenses provided in kind to workers, employees and individuals hired under management and control contracts. The social expenses provided in kind also include:
a) expenses for contributions (premiums) for supplementary voluntary social security, for voluntary health insurance and for life insurance;
b) expenses for food vouchers.
3. Expenses related to the operation of vehicles when the vehicles are used for management purposes.
Exemption from taxation
1. Exemption is applied to social expenses for contributions (premiums) for supplementary voluntary social security, for voluntary health insurance and for life insurance – up to BGN 60 per month per each employed person, when the taxable persons have no public liabilities subject to enforced collection at the time of the expenses’ incurrence.
2. Exemption is applied to social expenses for food vouchers when they do not exceed BGN 60 per month per each employed person and when the following conditions are cumulatively fulfilled:
.........the agreed basic monthly remuneration of the person in the month of the vouchers’ provision shall not be less than the average agreed basic remuneration of the person for the preceding three months;
........ the taxable person shall not have public liabilities subject to enforced collection at the time of the vouchers’ provision;
.........the vouchers shall be provided to the taxable person by a person authorized by the Minister of Finance, on the basis of a tender, to act as an operator of such activity.
3. Exemption is applied to social expenses for transportation of workers and employees and the persons hired under a management and control contract - from their place of residence to the place of work and back.
Exemption does not cover expenses for transportation carried out by car or by extra bus services except for the cases where such transportation is being carried out by car to hardly accessible and remote areas, and where the taxable person cannot guarantee the execution of its activity without incurrence of the expense.
Who pays this tax
The tax on representation expenses and the tax on expenses related to the operation of vehicles, when used in service of management operations, are paid by the persons subject to corporate income taxation.
Taxable persons in terms of the tax on social expenses provided in kind, pursuant to Article 204, Item 2, are all employers or contracting authorities according to management and control contracts.
The tax on expenses is being regulated by the Corporate Income Tax Act
Social expenses, which are not provided in kind and constitute income of and individual, are taxed under the terms and procedures of the Personal Income Tax Act.
The rate of expenses tax is 10 per cent.
There is no special form for declaring tax on expenses. Pursuant to Art. 217, Para 1 of the Corporate Income Tax Act, the tax on expenses is declared with the annual tax return filed by the taxable person.
Terms for payment of the tax
The tax on expenses shall be paid until the 15th day of the month succeeding the month in which the expense was assessed. In case the taxable person has overpaid tax on expenses or corporate tax, the person’s tax may be deducted from the tax on expenses due.
Payment of the tax
The tax on expenses can be paid in one of the following ways:
....via bank transfer
To state budget accounts, addressed to the respective Territorial Directorate of the NRA as per the place of registration.
See the list of bank accounts of the NRA TDs.
Payment can be effected from any bank by filling in a transfer order (deposit slip).
Payment via Internet requires possession of a debit card and registration at the E-pay and the NRA websites.
…. by postal order for tax payment
The postal order shall contain the address and the name of the respective Territorial Directorate (office) of NRA, the postal code, and the amount due.
Where a tax due has not been paid within the specified deadline, interest is due pursuant to the Act on Interest on Taxes, Fees and other State Receivables.