Annual
taxation and declaring of income received in 2012
Applicable
to the annual taxation and declaring of income received in 2012 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 the economic
activity as sole proprietor and from other economic activity as per Art. 29a of
the PITA;
renting
or other leasing of rights or property for consideration;
assignment
of rights or property;
other
sources.
Note:
income from other economic activity as per Art. 29a of the PITA is the income
from the economic activity of individuals registered as tobacco growers and
farmers, who according to law or at their own discretion are levied under the
procedure stipulated for the taxation of sole proprietors’ income.
The tax
on the common annual tax base shall be assessed by multiplying the common
annual tax base by 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 (BG) shall be levied with tax on
the annual tax base, at 15% tax rate.
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Deadlines
The
deadline for submitting the annual tax return as per Art. 50 of the PITA for
2012 is April 30th, 2013.
The
deadline for paying the tax for additional payment, which is declared in the
annual tax return, is also April 30th, 2013.
See more
information about the Annual Tax Return as per Art. 50 of the PITA with the
annexes and instructions on its submission.
Important!
The individuals, who submit their annual tax return by February 10th, 2013, are
entitled to a 5% discount on the paid within the same deadline portion of the
tax for additional payment under the annual tax return.
The
individuals, who submit their annual tax return electronically by April 30th,
2013, are entitled to a 5% discount on the paid within the same deadline
portion 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!
The discounts can be used if the individuals, who must pay tax in advance, did
pay the full amount of the tax due within the statutory deadlines.
The
annual tax return shall be submitted by resident and non-resident individuals
who have received income in 2012 which is:
subject
to taxation on the common annual tax base including income from employment
relations pursuant to § 1, item 26, letters “f” and “i” of the Supplementary
Provisions of the PITA.
subject
to taxation with tax on the annual tax base for the income from economic
activity as sole proprietor and the income from other economic activity as per
Art. 29a of the PITA;
subject
to taxation with patent tax under the Local Taxes and Fees Act (LTFA).
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The resident individuals are obliged to declare:
Income
received from abroad during the year from dividends, liquidation quotas, as
well as taxable income from supplementary voluntary social security, voluntary
health insurance, and life insurance.
Shares
owned and shareholdings in companies, place of business, fixed establishment
and real estate abroad.
Extended loans/borrowings, as follows:
a) the
outstanding balance of the loans extended in 2012, if their total amount
exceeds BGN 10 000;
b) the
outstanding balances as of the end of 2012 of loans extended during the same
year as well as within the previous 5 fiscal years, if the total amount of
these balances exceeds BGN 40 000;
c) the
outstanding balance of loans received in 2012, if their total amount exceeds
BGN 10 000, excluding bank loans received from credit institutions as per the
Credit Institutions Act;
d) the
outstanding balances as of the end of 2012 of loans received during the same
year as well as within the previous 5 fiscal years, excluding bank loans
received from 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 taxation
purposes of EU member-states or countries, which are party to the Agreement on
the European Economic Area, 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, whereas the
tax return includes all other income that are subject to declaring by the
non-resident individual.
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Cases when no annual tax return is submitted:
Free
from submitting an annual tax return are the individuals who in 2012 have
received only:
income
from employment relationship, if by December 31st, 2012, these individuals have
a principal employer who has assessed the annual amount of the tax for all the
employment income received during the fiscal year, and the full amount of the
tax for the fiscal year has been deducted by January 31st, 2013, and/or
employment
income, if as of December 31st, 2012 the taxpayer has no employer as per his
principal employment or has such an employer, but this employer has not assessed
the annual amount of the tax for all the employment income received during the
fiscal year, provided the following conditions are simultaneously fulfilled
the tax
on the common annual tax base is equal to the deducted in advance tax on the
employment income and
the taxpayers is not using any tax benefits
when he submits the annual tax return; and/or;
3. non-taxable income, and/or
4. income taxable with a final tax as
per Chapter 6 of the PITA, except for:
the
income of local individuals from dividends, liquidation quotas, supplementary
voluntary social security, voluntary health insurance and from life insurances
with foreign sources;
income of foreign individuals if they have
chosen to adjust the final tax on income as per Art. 37 of the PITA.
No
annual tax return shall also be submitted in case the individuals are
registered as sole proprietors, but in 2012 have not performed economic
activity, have not received other income subject to declaring in the annual tax
return, and here are no circumstances which the individual had to declare (real
estate in a foreign country, received and/or extended any loans, etc.).
The
annual tax returns shall be submitted:
personally in the respective office of the NRA
as per 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’s offices), or
on-site at one of the 352 post offices, where
they will be given a reference number by Bulgarian Post’s official;
by Internet with an electronic signature (see
more details on declaring income by Internet).(BG)
