The documents to establish of pensionable service (UP-3) and insurance income (UP-2) shall be issued free of accounting of the company in accordance with Art. 5 para. 7 of the Social Insurance Code.

These documents are prepared by the accounting within 30 days after termination of employment of the employee. And in case the request is made by the employee for the preparation deadline is 14 days from the date of the application. Therefore it is important to know that no one can refuse you give you issue these documents and each is obliged to observe over the statutory deadlines.

In the event that the company where you worked has stopped activity of NSSI can issue you a contribution period and pensionable income.

Accounting Services Bulgaria

Accounting Services Bulgaria

One of the most frequently asked questions in the field of accounting is after the registration of the company how it should be provide owners / partners.

Providing manager in EOOD

When to the registration documents of the company is applied a contract for management and control of the company owner and is agreed remuneration, the same shall be provided by contract for management and control on minimum social security threshold for the economic activity.

In the other case, when the manager and sole owner of EOOD are one and the same person and there is no a contract for management and control entered remuneration has two options to ensure:

- As a manager under management and control of the minimum social security threshold for economic activity or
- As a self-employed person on the minimum insurance income 460 BGN to the maximum insurable earnings – 2600 BGN

Providing partner in OOD

If a partner has a contract for management and control and carries out activities other than management, which will receive remuneration should be provided in two ways – once as manager and then as a self-employed person.

If a partner is not registered as a manager, the same can be provided under an employment contract or if he pursues his occupation without an employment contract is provided as a self-employed person.

Accounting Services Bulgaria

Accounting Services Bulgaria

On the website NRA published new models of the following documents:

- Information for income paid to individuals under Art. 73 of the Personal Income Tax Act;
- Statement for remuneration paid of art. 45, para. 4 of PITA;
- Official note under Art. 45, para. 4 of PITA;
- Official note of income acquired from sources in art. 35 of the Personal Income Tax Act;
- Official note under Art. 45, para. 2 pt. 1, 2 and 3 of the Personal Income Tax Act;
- Official note under Art. 45, para. 1 and par. 2 pt. 4 of the Personal Income Tax Act and
- Declaration under Art. 55, para. 1 of PITA and art. 201, para. 1 of CITA and applications.

Accounting Services Bulgaria

Accounting Services Bulgaria

Every employee is entitled to paid annual leave.

According to Art. 155 para 1 of the Labour Code when starting work for the first time the employee may use paid annual leave when it acquires at least 8 months work experience.

In case of termination of employment before acquisition of of eight months work experience the employee is entitled to compensation for unused leave, calculated in accordance with Art. 224, para 1.
The amount of paid annual leave is not less than 20 working days.

Some categories of workers, depending on the specific nature of the work are entitled to an extended paid leave in which leave is included under para 4. The categories of employees and the minimum amount of such leave shall be determined by the Council of Ministers.

According to Art. 156 under Art. 155, para. 2 the employee is entitled to additional paid leave:

- to work under specific conditions and risks to life and health that can not be eliminated, restricted
or reduced, despite the measures taken – not less than 5 working days;
- To work in irregular working hours – not less than 5 working days.
The types of work for which additional annual leave shall be determined by an ordinance of the Council of Ministers.

Accounting Services Bulgaria

Accounting Services Bulgaria

According to the Labour Code, Art. 70 states that where the work required to verify the suitability of the employee to perform, final acceptance of the work can to be preceded by a contract for a trial period of 6 months. Such a contract may be concluded when the employee wishes to ascertain whether the work is suitable for him.

An important part is when concluding of the contract for a period of the test is to be mentioned some of the characteristics:

- In the contract shall specify in whose benefit it is agreed probationary period. If this is not specified in the contract, it is agreed that the period of testing is scheduled for the benefit of both parties.
- During the test, the parties shall have all rights and obligations as well as in the final agreement.
- A probationer does not include the time during which the employee was on leave or for other valid reasons not performed the work for which the contract is concluded.
- For the same job with the same worker in the same establishment employment contract for a trial period can be entered only once.

Termination of the contract for a trial period shall be governed by Art.
71 of the Labour Code:

- until the expiration of the probationary period the party in whose benefit it is agreed, may terminate the contract without notice;
- The labor contract is deemed to be finally concluded, if not terminated until the expiration of the probationary period.

Accounting Services Bulgaria

Accounting Services Bulgaria

According to the Social Insurance Code self employed are:

- Freelancers and / or craft activity of registration;
- Persons engaged in work as sole traders, owners or partners in commercial companies and individuals – members of the unincorporated companies;
- Registered farmers or tobacco producers.

The Self-employed individuals are obliged to submit to the NRA declaration form for the initiation, cessation, renewal or discontinuation of employment in 7 – days of the occurrence of the relevant circumstance.

The minimum monthly insurance income for self-employed persons is 420.00 BGN.The exception are registered farmers and tobacco producers, for which the minimum monthly insurance income is 240.00 BGN.

The maximum monthly insurable income for self-employed persons is 2 400.00 BGN.
It is important to note that the declaration is complete with address identity card of the person and submitted to the Territorial office at this address.

After submit a declaration of self-employed persons are required to submit a declaration form 1 to 25 day of the month following the month and accordingly pay their obligations to the NRA PIN. Declaration form 6 is submitted once a year by 30 April of the calendar year following the year to which it relates.

The Self-employed individuals also submitted a declaration under Article 50 of the Personal Income Tax Act of the final amount of the insurance income.

Accounting Services Bulgaria

Accounting Services Bulgaria

According to VAT car is a car in which the number of seats the driver does not exceed 5.

The fuel expenses for a car classified as maintenance costs repair and operation. These costs are treated differently depending on what kind of activity is the fuel used:

1. When the fuel is used for the performance of the main activity of the company, it is recognized for tax purposes and not subject to to income tax on costs. Activities that fall into this category – security, transport or taxi services.

2. When the fuel is used for the management activities of the company, the costs are not subject to VAT pursuant to Art. 70, paragraph 1, item. 3 VAT and taxed 10% according to Art. 204 tons. 3 CITA.

3. When the fuel is used for main and management activities of the company tax base costs are based on mileage for the activity for the calendar year.

4. When the cost of exploitation, repair and maintenance of passenger cars used for representation expenses such as business meetings, or other entertainment events are subject to 10% tax under CITA.

Accounting Services Bulgaria

Accounting Services Bulgaria

Companies which accounted representative expenses are subject to tax 10%.
Representative expenses are considered:

- Costs associated with the activity of the company for example: organizing business events, buying food and drinks, corporate event, buying flowers and gifts, and more.

- Social costs for the staff and persons employed on contract management and control for example additional voluntary insurance, food vouchers and more.

- Costs related to the exploitation of vehicles for carrying out management activities.

According to Corporate Income Tax Act representative expenses are taxed at 10% on the total value of such tax shall be declared and paid in each financial year of the company.

It is important to note that the organization of congresses, conferences and other events of this type do not fall under the tax rules.

Accounting Services Bulgaria

Accounting Services Bulgaria

At the end of September was upgraded system of the commercial register as the system is already operational. The main difference noticeable at first glance is the ability to trade register is fluent foreigners as the system is an added feature to change the system language and translated into English. This will greatly facilitate foreign company owners and natural persons who now easier can check and search the site brra.bg

Accounting Services Bulgaria

Accounting Services Bulgaria

In compliance with Article 25, Paragraph 3 of the Health and Safety at Work Act all employers shall ensure that their workers and employees receive examinations by occupational health services.

Occupational Health Services counsel and assist employers in planning and organizing the following activities for providing and maintaining healthy and safe working conditions. For more information contact us.

Accounting Services Bulgaria

Accounting Services Bulgaria

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Accounting Services Bulgaria

Accounting Services Bulgaria

Compulsory VAT registration – art. 96, para 1 of the VAT Act.
An obligation for registration arises when a taxable person reaches a taxable turnover of BGN 50 000 or more for a period 12 consecutive months preceding the current month.

Compulsory registration for supply of goods with assembly and installation – art. 97, para 1 of the VAT Act. A person who is established in another Member State and who effects taxable supplies of goods which are assembled or installed within the territory of the country by or for the account of the said person. The application for registration shall be submitted not later than 7 days prior to the date of occurrence of the chargeable event for the supply.

Compulsory registration in case of distance selling of goods – art. 98 of the VAT Act.
Any taxable person who effects a supply of goods whereof the place of transaction is within the territory of the country under the terms of distance selling shall be registered on this grounds. The obligation for registration arises not later than 7 days prior to the date of occurrence of the chargeable event and turnover of BGN 70 000.
Compulsory registration in case of Intra-Community Acquisition (ICA) – art. 99 of the VAT Act.

The application for registration shall be submitted not later than 7 days prior to the date of occurrence of the chargeable event for the acquisition by which the total value of taxable Intra-Community acquisitions exceeds BGN 20,000. The obligation for registration arises not later than 7 days prior to the date of occurrence of the chargeable event.

Compulsory registration as result of transformation – art. 10, para 1 of the VAT Act.
Registration under the VAT Act shall be compulsory for any person who in case of no supply of goods or services (Art. 10, para. 1 of the VAT Act) acquires goods. This registration shall be effected by submission of an application for registration with in 14 days.

Registration of a non-resident who is not established within country – art. 101 of the VAT Act.
This type of registration does not apply to non-resident persons supplying services under Chapter Eighteen of the VAT Act, insofar as there is a specific procedure for registration. The obligation for registration arises not later than 14 days prior to the date of occurrence of the chargeable event.

Accounting Services Bulgaria

Accounting Services Bulgaria