This year’s tax campaign started with a slight delay about 10 days, and the reason is the many legislative changes that were adopted in late 2020.
The obligation to file a declaration for all those who have received income from fees, rents or other income without an employment contract does not change. Declarations are accepted both online and over the counter. A discount of 5% (but not more than BGN 500) can be used if the debts are paid by January 31. The deadline for declaration and payment this year is April 30. This became clear during a briefing at the National Revenue Agency (NRA), dedicated to the new tax campaign.
- The new annual declarations for personal income taxation and corporate taxes have already been published on the NRA website.
- In order to take advantage of the discount, several things must be observed. The obligations should be paid at the moment of submitting the declaration, as well as the entire due tax should be paid by the end of January.
The Right Details
From this year, the possibility comes into force in certain cases for the taxable person to be able to file an annual tax return, although he does not carry out activities within the meaning of the Accounting Act. These are social expenses for which there is an obligation for tax on expenses, declaration of incurred loss, desire of the person to declare amounts with the character of hidden distribution of profit and others. To estimate tax refund this is important.
The same possibility has been introduced for cases of liquidation or insolvency
Employers who were not liable for the previous year and did not file an annual tax return, but for the current year wish to opt for taxation of income expenses in kind, representing an expense in kind, will be able to do so through an annual tax return.
- There are also changes in the procedure for declaring and paying corporate tax, withholding tax, cost tax and alternative tax in cases of termination by liquidation or insolvency, termination of the place of business of a foreign legal entity.
- Another change is related to relief for farmers who can now submit electronic declarations under the Personal Income Tax Act (PITA).
- In the past year (for the tax year 2017), individuals submitted about 600 thousand declarations, but only about 35% of them were electronically. “We strongly hope that this year we have the potential to make every second tax return filed by citizens online, because it is faster, easier, cheaper and more convenient for everyone.
The tax authorities have announced that in 2020 a serious change is planned is the tax return for individuals to be filled out in advance. According to the spokesman of the National Revenue Agency, the companies will fill in an additional form for the income under civil contracts, which they will send to the revenue administration. In this way, the NRA will have the information about the taxes paid in advance and the declaration will be filled in “ex officio” by them. In cases where the person has other income – for example from rents or securities trading, he will fill in the additional amounts in the relevant fields of the tax return.