The statutory deadline in compliance with CITA for filing the annual corporate income tax return with the Bulgarian National Revenue Agency is March 31st of the following year. The annual corporate income tax return should be accompanied by the annual financial statements of the Bulgarian company and if necessary by the auditor’s report /in case the Bulgarian company is subject to annual statutory financial audit/. The liability under the corporate… Continue reading »
Bulgarian tax legislation provides thin capitalization rules, which may restrict the tax deductibility of interest expenses if debt to equity ratio of a company for a particular tax period exceeds three to one. The restricted interest costs may be carried forward and utilized against the taxable profit of the company in the following five years.
Any impairment losses incurred by the Bulgarian company as a result of writing-off of… Continue reading »
As of January 1st, 2007 the Bulgarian VATA and RAVATA have established new rules concerning invoices. In general, these requirements comply with the EU Invoicing Directive where some additional requisites are provided for the Bulgarian legislation.
Invoices may be issued on a paper or submitted electronically. Invoices received electronically shall be accepted when the recipient has confirmed the receipt of the said invoices, provided that the authenticity of origin… Continue reading »
We will continue our previous post about the withholding taxes and application of double tax treaty relief in Bulgaria. If you have missed the first part please read it here first…
Fiscal base for the withholding tax in Bulgaria:
- for tax assessment of the income from dividends is the gross amount of the dividends distributed
- for assessing the tax on the income from liquidation quotas… Continue reading »
Bulgarian CIT legislation allows tax deductibility of expenses that are supported with proper primary accounting documents (e.g. invoices acceptable in both electronic or hard copy forms). If such documents are not available with the Bulgarian company then the authorities of the National Revenue Agency may refuse tax deductibility of the respective expenses, which may lead to unfavourable tax implications for the Company (e.g. assessment of additional CIT on the amount… Continue reading »