Pursuant
to Art. 254, Par. 1 of the Corporate Income Tax Act (CITA), the taxable persons
mentioned in Chapter 34 can choose whether their activity from ships operation
is levied with the tax on the activity from ships operation. The tax rate is 10
per cent. The taxable persons, who have chosen to be levied under this
procedure, are levied with this tax for a term not shorter than 5 years.
According
to Art. 218, Par. 2, for all the remaining activities, except for those that
must be levied with the alternative tax, the taxable persons must be levied
with corporate tax.
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Who is entitled to pay alternative tax on the activity from ships operation?
This tax
is paid by the persons performing marine commercial navigation if they comply
with all the following conditions:
they are companies registered under the
Commerce Act or are places of business of a company, which is established for
taxation purposes in another European Union-member state or European Economic
Area-member state in accordance with the respective tax legislation, and, based
on a Tax Treaty concluded with a third state, this company is not considered as
established for taxation purposes in another state outside the EU or the EEA;
they operate with own or rented ships, and
also rent out ships;
they do
not refuse to train trainees aboard the ships, except for the cases when the
number of the trainees for a period of one year exceeds the ratio 1 trainee per
15 officers navigating the ships;
they recruit their crews with Bulgarian
citizens or citizens of another EU or EEA-member state;
at least 60 per cent of the net tonnage of the
operated ships belong to vessels that are being navigated under Bulgarian flag
or the flag of another EU or EEA-member state;
they operate according to the requirements of
international conventions and the EU legislation on ships navigation safety and
security, the environmental protection from ships navigation, and the living
and working conditions on board.
Tax on
the activity from ships operation is also due by the persons performing marine
commercial navigation when they are administering ships based on management
contracts, and at the same time are complying with the following conditions:
they
meet the criteria mentioned above in Items 1, 5 and 6;
more
than half of the administrative staff ashore or the crew consists of Bulgarian
citizens or citizens of other EU member states or EEA member states;
at least
two thirds of the tonnage of the ships navigated are administered by companies
that are residents for tax purposes of an EU member state or another EEA member
state.
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Restrictions to the scope of the tax
The
taxable persons are not entitled to apply the procedure for levying the
activity from ships operation for:
Sea ships with net tonnage below 100 tons;
Fishing
ships;
Entertainment ships, except for passenger
ships;
Ships
which the taxable persons have consigned for management or under a bareboat charter
contract, except for the cases when the ships are consigned to the state;
Installations
for extraction of ores and minerals, oil platforms and ships performing
dredging, towing and dragging activities.
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Legislation
The
activity from ships operation is levied with alternative tax pursuant to the
Corporate Income Tax Act.
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Terms for declaring and paying
By
December 31st of the previous calendar year – filing a declaration for
exercising the right to choose under Art. 259, Par. 1;
By March
31st of the next calendar year – filing an annual tax return and paying the tax
due for the previous calendar year.
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Declaring the tax on the net tonnage of ships for the days the ship was in
operation:
The
annual tax return is submitted to National Revenue Agency’s territorial
directorate, where the taxpayer is registered.
Pursuant
to Art. 259, Par. 3 of the CITA, when submitting the tax return the taxpayer
must also submit an annual statement of operations. Pursuant to § 1, Item 56 of
the CITA’s Supplementary Provisions, the annual statement of operations shall
be the one under Art. 20, Par. 4 of the Statistics Act.
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Declarations/returns for downloading:
Declaration
under Art. 259, Para. 1 of the CITA with the option to select taxation of ships
operation.
Annual
tax return under Art. 259, Para. 2 of the CITA for the tax due on ships
operation.
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Declarations/returns are submitted to:
National
Revenue Agency’s office where the taxpayer is registered, or
§ through a licensed postal operator
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Tax due is paid:
via
banks
To state
budget accounts of NRA’s territorial directorate, where the taxpayer is
registered.
Payment
can be made from any bank by filling in a payment order (deposit slip) for
payment to the budget. Usually the banks charge a fee for the transfers. The
lowest fee is charged by the bank where the account of the respective NRA
territorial directorate (office) is opened.
See the
list of the banks serving the accounts of the National Revenue Agency.
by
Internet
Payment
by Internet requires a debit card and registration at the websites of E-pay and
the NRA.
See
details about payment of taxes and social security contributions by Internet
with debit card.
with
postal order for tax payment.
The
postal order shall specify the address and name of the respective territorial
directorate (office) of NRA, the postal code, as well as the amount due.
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Sanctions
Pursuant
to Art. 261, Para. 1 of the CITA, a taxable person that fails to submit the tax
return under this act, or fails to submit it in due time, or fails to state
data or circumstances, or states incorrect data or circumstances resulting in
either a lower amount of the tax or unjustified reduction, or assignment, or
exemption from tax, shall be penalized with a penalty in the amount from BGN
500 to BGN 3,000. In case of a repeated (§ 1, Item 44 of the Supplementary
Provisions) violation under Par. 1, the penalty shall be in the amount from BGN
1,000 to BGN 6,000 (Art. 261, Para. 2 of the CITA).
Pursuant
to Art. 277 of the CITA the persons who have applied the procedure for levying
the activity from ships operation and do not comply with the conditions that
entitle them to choose, shall be penalized with a penalty in the amount from
BGN 20,000 to 30,000, and in case of a repeated violation – in the amount from
BGN 40,000 to 60,000. These persons shall not be entitled to apply the
procedure for levying the activity from ships operation for the period of 5
years (Art. 277, Para. 2 of the CITA).
A
taxable person who fails to perform his/her obligations under Art. 259, Para. 3
(to submit an annual statement of operations), shall be penalized with a
penalty in the amount from BGN 500 to BGN 2,000, and in case of a repeated
violation – in the amount of BGN 1,500 to BGN 5,000 (Art. 276 of the CITA).
The
statements for administrative offences detected shall be drafted by the
National Revenue Agency authorities, and the penal rulings shall be issued by
the Executive Director of the National Revenues Agency or an official authorized
by him/her (Art. 278, Par. 1 of the CITA).
Pursuant
to Art. 278, Para. 2 of the CITA the offences are established, and the penal
decisions are issued, appealed and executed according to the Administrative
Offences and Sanctions Act.
