Dear colleagues, clients and readers, before stating our opinion about the amendments to Bulgaria’s Corporate Income Tax Act, VAT Law and the Income Taxes on Natural Persons Act made on 01.01.2016, I intend to give short clarification concerning “a weekend tax” and its essence and features in reality, whereas many our clients have asked us whether it is some new tax and which Bulgarian law details it. To put it in a nutshell, amendments have been made to many Bulgarian tax laws on the ...
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A client asked us the question which are the ways for foreigners to buy land estates and real estates in Bulgaria? We would like to reply in the following way. There are two variants: 1) The buyer is a citizen of the European Union and of EEC or 2) The buyer is a citizen of third country. 1) Whenever the buyer is a citizen of the European Union and EEC, he can acquire land after registering himself as an agricultural producer and is entitled ...
I will try to answer to a question according to purchases and sales of goods out of EU, and the VAT questions according to it. The VAT deals (according to Bulgarian VAT act) are 2 types: taxable and untaxable. The taxable deals under VAT could be with 0% ratio, with 20% ratio or different percentage rate (for example in the tourism). In order one deal related with the delivery of goods to be taxable, the seller has to be under VAT registration according to the ...
Because of the fact, that Bulgaria is a European Union member and a member of the European Economic Area, our legislation in the field of VAT is comparatively unified. Despite the ambition of EU institutions for harmonization, however there are certain regional differences between the member countries. The tax rate in Bulgaria, generally, is 20% on the purchase made. There are exceptions to this general rule, by dint of the provisions of article 22 of the law on a value-added tax – Bulgaria’s VAT Law (A ...
The topic, which I choose for this article is one spiny question- a small one , but which costs a lot of time and needles. If this information is helpful, I will be happy. The procedure is opening of a bank account of a company when: - The owner of the Bulgarian company is another company, which is a foreign legal entity or entities. What happens usually? The company is registered and filed in the Bulgarian trade register. The manager of the company ...
If you have a legal entity (with commercial purposes) found in Bulgaria, you may import a car from a country- member of EU or from a thrird country ( which is not a member of EU or European Economical area) When you buy a car form a country which is not a member of EU, you will have to pay in BG 20% VAT tax and also the tariffs according to the custom declaration in case of import in BG. If the car is with big ...
STARTING A BUSINESS? – OR HOW TO CHOOSE THE APPROPRIATE TYPE OF A COMPANY Do you want to register your own company? First, you must choose what it should be. In this article, we shall dwell on the kinds of traders and we hope that the information given below will be of great avail to you, when making your choice. In the beginning, we shall explain the meaning of a “trader”! Every person, who has no specialized knowledge, can imagine a seller. It is normal. The ...
TAXES IN BULGARIA People ask us a lot of questions concerning taxes in Bulgaria. Some of them (the most common ones) are: 1. What is the amount of a profit tax? 2. How much is the tax on dividends? 3. Do I owe taxes, if I pay a foreign a sum of money? 5. How much is the excise tax? 6. What is the amount of VAT and when is it due? 7. Is there a gambling tax? – and many others. I shall try to answer, in brief and in ...