The deadline for annual taxation and declaring of income received in 2012, according to the provisions of the Personal Income Tax Act (PITA), is approaching – 30th of April 2013. By this date the due tax needs to be transferred to the National Revenue Agency bank account.

Subject to tax on the common annual tax base is the income of individuals received from:

– employment relations;

– economic activity different from economic activity as sole proprietor and other economic activities as tobacco and agricultural producers;

– rent or any other compensated granting of the use of rights or property;

– transfer of rights or property;

– income from other sources.

The annual tax return should 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 for income from employment relations pursuant to § 1, item 26, letters “e” and “I” of the Supplementary Provisions of the Tax and Social Security Procedure Code (TSSPC);

•           which is subject to taxation with tax on the annual tax base for the income from economic activity as a sole proprietor and income from other economic activity as per Art. 29a of the PITA;

•           which is subject to taxation with patent tax under the Local Taxes and Fees Act (LTFA).

The individuals, who submit their annual tax return online by April 30th, 2013, are eligible to a 5% discount on the paid within the same deadline part of the tax for additional payment under the annual tax return. Discounts are given if the individuals, who must pay tax in advance, have paid the tax due in full amount and within the statutory deadlines.

The annual tax returns can be submitted in the following ways:

  1. Personally in an office of the  National Revenue Agency which corresponds to the permanent address of the individual and the sole proprietor;
  2. By postal order with a return receipt or on-site at the post offices
  3. Via Internet with an electronic signature.

With regard to the content of the declaration itself, there are no significant changes. There should be declared the granted or the received loans in 2012 which exceed the amount of 10,000 BGN and the amount of 40,000 for the previous 5 years. These loans exclude loans provided by banks or any credit institutions.

We remind herewith that every person who has worked on a civil contract in 2012 is obliged to submit tax declaration, regardless of the amount of the received remuneration.

The same rule applies for persons who have been conducting activity which is taxable with a patent tax and also for physical persons who owned shares in companies and real estates from abroad, as well as for those who have received incomes from a voluntary insurance or insurance and dividends and liquidation shares from abroad.

Those who do not submit a tax declaration within the statutory defined deadline, are subject to a fine of up to 500 BGN.

(to be continued)…