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 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.
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.
As of 01.01.2016, the minimum wage varies from 380 BGN to 420 BGN next increase in the minimum wage is set to become on of 01.01.2017 – 460 BGN
The amount of maximum insurable earnings remains at the rate of 2,600 BGN
The amount of the allowance for raising a child from one to two years is maintained at a rate of 340 BGN
The average monthly income per family member as of 01.01.2016 totaled 350 BGN. This income serves to limit access to family allowances for children. From 01.07.2016 Human Development provides income increased to 400 BGN
Child benefits in the following sizes:
• 37 BGN for a child
• 85 BGN for two children
• 130 BGN for three children
• 140 BGN four children, thereby increasing the number of children in the family, using the family will increase by 20 BGN
• Maximum insurable income changes from 2400 BGN to 2600 BGN .;
• Minimum insurance income for self-employed persons who did not carry out activities in 2013 and those which started operations in 2014 and 2015 is set at 420 BGN .;
• Minimum insurance income for self-employed persons who have exercised an activity in 2013 is determined according to their taxable income for 2013 as follows:
- Up to 5400 BGN – 420 BGN .;
- 5 400.01 BGN to 6500 BGN – 450 BGN .;
- 6 500.01 BGN to 7500 BGN – 500 BGN .;
- Over 7500 BGN – 550 BGN
• Minimum insurance income for farmers and tobacco – 300 BGN
• The minimum wage varies from 340 to 360 BGN of 01.01.2015 and of 01.07.2015, they are to be increased to 380 BGN
• Changes in VAT mainly concern the provision of telecommunications services, broadcasting of radio and television and electronic services to end users. These services should be subject to VAT in the country in which he is established taxable person – the customer. To avoid the need to register for VAT in each Member State on such deliveries, providers will be able to enjoy special arrangements for reporting the information system MOSS, after applying for it.
• Annual tax returns can now be submitted electronically only runway code issued by the NRA.
• The maternity allowance does not change remains 340 BGN changes affect the way the calculation of income which is received mother before going on leave – 18 months increased to 24 months.
• A new electronic system for the submission of medical certificates from doctors at the Institute. This does not relieve employees of their obligation to submit a doctor’s note – a copy of the employer. It is believed that the introduction of the electronic system will speed up the processing of medical certificates.
• Within 01.31.2015 year self employed can change the type of self-insurance you. Declaration of self-employment may be submitted in person at the NRA or by proxy, and also by registered mail.
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
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