Tax on
expenses
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.
Acts
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.
Tax rate
The rate of
expenses tax is 10 per cent.
Declaring
taxes
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).
.....via
Internet
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.
Sanctions
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.
