CHANGES IN TAX TERMS RELATING TO THE EMERGENCY SITUATION IN BULGARIA
During the COVID-19 crisis in Bulgaria, the Bulgarian parliament has accepted some extraordinary changes in the legislation. Some of the changes have the aim to help the business to go through the difficulties that arise from the emergency restrictions.
Below we provide brief information concerning the changes in the tax terms.
The changes concerning the tax terms are as follows:
1. The term for preparation of the Annual Financial Reports for 2019 and also the term for payment of the corporate tax for 2019 and the tax over the expenses is prolonged till 30.06.2020.
2. The advance contributions for corporate tax for 2020 shall be defined by 15.04.2020. The terms for payment of the advance contributions won’t be changed. The advance contributions shall be defined on the basis of the expected tax revenue for 2020.
3. The term for submission of the Annual tax declarations under the Personal Income Taxation Act, but only for the persons performing business activities under the Commercial Act and for the agricultural producers. Respectively the term for payment of the tax will be prolonged till 30.06.2020. However the persons will use the 5% discount from the tax due if the declaration is submitted and the tax is paid till 31 May 2020.
IMPORTANT! We shall notify that the terms for declaring and payment of the tax for all other persons remains the same, namely – 30.04.2020. Respectively the persons will use the 5% discount from the tax due if the declaration is submitted and the tax is paid till 31.03.2020.
4. Taxes due under the provisions of the Local Taxes and Fees Act – the term for payment with 5% discount of the transport vehicle tax and the real estate property tax will be prolonged till 30 June 2020.
5. The term for submission of the declaration that the companies have not carried out an activity for 2019 in the Commercial Register will be prolonged till 30 June 2020.
6. The term for submission of the Annual Financial Reports for 2019 in the Commercial register will be prolonged till 30 Sept. 2020.
We would like to notify that the terms for some of the taxes will NOT change and those are:
- - Value Added Tax;
- - Advanced taxes under the provisions of art.42, art.43, art.44 and 44a from the Personal Income Taxation Act, deducted by the enterprises and the self insured persons;
- - Advanced taxes under art.43 of the Personal Income Taxation Act owed by the the persons implementing freelance profession;
- - Advanced taxes, owed by the Lessors under art.44 of the Personal Income Taxation Act;
- - Tax withheld at the source under art.194 and 195 of the Corporate income taxation Act and the final tax under art.37 and art.38 of the Personal Income Taxation Act (for example dividend tax, incomes paid to foreign persons, etc.).
The team of the Bulgarian Consulting Group monitors all changes and updates of the Bulgarian legislation in the conditions of declared state of emergency and informs its clients and partners in a timely manner in order to give them legal certainty that their activity is fully legal and adapted to the emergency situation in Bulgaria.