Company registration

The registration of a new company takes 1 to 4 days – this includes preparing the necessary documents for submission to the Commercial Register.

VAT registration

VAT registration is a free service like yours documents can be submitted online.
The deadline for registration of VAT company takes 14 working days from the date of the application for registration.

Deadline for submission of monthly VAT return – submission of monthly VAT return is 14 th including the month following the tax period to which it relates.

Publication of Annual Financial Statements

The financial statements should be filed to the Bulgarian Trade Registry also and this is obligatory to all companies.

The deadline for this is:
1. for sole traders – 31 May;
2. for limited liability companies – 30 June;
3. and all other traders within the meaning of the Commerce Act – within 31st July.

Representative expenses

It is important that these expenses should be connected to the popularization of the activity of the company.
The tax rate of these expenses is 10% of their value. The sum should be paid and declared once after the end of the financial year.

The payment of taxes ( how is it paid and how )

The corporate tax is paid once at the end of the financial year which is March 31st. The rate of the corporate tax is 10% charged on the amount of your annual profit. About how the payment of the taxes happens – almost all of our customers provide us passive access to their online banking. This means that we receive special user name and password for accounting needs so that we could upload the payment orders in the online banking and the customers just to approve them.

Insurance ( for the people involved in the company )

There is no limit according to the Bulgarian legislation about the number of the employees that a company must have. For example you could work only by yourself as manager of the company or you could either have 10 or more employees – it depends on you. As for the insurances rate – in Bulgaria each job position that you want to assign staff to, have a minimum wage. This amount is individual for each job position and it is linked to the activity of your company and your vision for the amount of the employees’ salaries. On the amount of the employees’ salaries you owe insurances. Their rate is 17.8 % on the behalf of the employer. The minimum wage in Bulgaria for 2016 is 420 BGN. The insurances are paid the same way as taxes.

Who is obliged to pay the advance tax upon paying income from rent to an individual – lessor?

Where the payer of income from rent is an enterprise, the advance tax shall be deducted and paid by the enterprise – payer of the said income.

What deadlines must be observed by the enterprise – payer of income from rent, in relation to the deduction and payment of the advance tax for this type of income?

The advance tax on income from rent shall be calculated by the enterprise – income payer, and shall be deducted upon payment of the rent. The deducted tax shall be paid by the end of the month, following the trimester during which the tax has been deducted. No tax shall be deducted and paid in advance for the fourth trimester.

Who is obliged to submit the new return for taxes due – the lessee or the lessor, and what are the deadlines?

The return under Art.55, Para.1 of PITA and Art.201, Para.1 of CITA for taxes due (template 4001) shall be submitted within the deadlines for payment of the advance tax, i.e. by the end of the month, following the trimester during which the tax has been deducted by the lessee, when the lessee is an enterprise

Therefore, the return shall be submitted by the person obliged to pay the advance tax due for the income from rent.

Shall 10% professional expenses be deducted from the rent paid, before the income payer calculates and deducts the advance tax?

Yes. The acquired income shall be reduced by 10% professional expenses, and the 10% tax is calculated and deducted using the difference.

How to pay the tax deducted by the income payer?

The advance tax deducted by the payer shall be paid to the state budget to an account of the territorial directorate of NRA, competent for the place of registration of the income payer.

What document should be issued by the income payer for the deducted tax?

The enterprise – payer of income from rent – shall issue for the income paid and the tax deducted a bill for amounts paid and a official document as per template, and these documents shall be provided to the person who has acquired the income from rent.