Personal tax return - Features and requirements
Ecovis | 24 April 2024
Every year many people ask themselves whether they should file a personal tax return. This article from Ecovis Bulgaria will help you understand who is required to do so, and what the deadlines and exemptions are.
The persons who are required to file a personal tax return (for tax purposes) are domestic individuals who have earned income from sources in Bulgaria or abroad and foreign individuals who have earned income from sources in Bulgaria (under the Income Tax Act).
In this article we will also cover many questions that come up when most people try to figure out their personal tax return laws, so stay tuned. Happy reading!
Exceptions and deadlines on personal tax returns
Exception for filing a personal tax return
There is an exception to the obligation to file a return for persons who have only earned income (or pensions) during the year, the tax on which has been paid in full by the employer and there are no other obligations to declare (Art. 50 of the Personal Income Tax Act).
Deadline for filing the personal tax return
The deadline for filing the personal tax return is 30.04 in the following year, and in case the person has carried out a commercial activity (ET or equivalent), the deadline is extended to 30.06, in both cases corrections can be made until 30.09.
The deadline for payment of the tax and the equalisation contributions, if any, is 30.04 and 30.06, respectively, if the person has carried out a commercial activity.
How the NRA made it easier to file a personal tax return
In the last 2 years, the NRA has significantly facilitated the process of filing personal tax returns for individuals by automating it.
Automated data loading: When the NRA submits the return with a KES or PIK, the income paid by companies to individuals is automatically loaded. This includes employment contracts, civil contracts, rents, royalties, interest, leases, sale of property, and payments received from courier companies.
Online filing option: The return can be filed online with a KES or PIK from the NRA. This is a quick and convenient way without the need to visit an NRA office.
As a result of these innovations:
- Filing a tax return is easier and faster than ever.
- The risk of errors is reduced.
- Time and effort are saved.
- We don't have to collect receipts from income payers
- We do not have to attach certain documents such as TELC, birth certificate of children, etc.
It is important to note that even if your details are automatically loaded, it is advisable to check your return for any inaccuracies. If necessary, you can contact an accountant or tax professional for assistance.
What should be declared?
All income earned by the person, including employment income, should be declared, with the exception of non-taxable income listed in Article 13 of the Income Tax Act. If desired, non-taxable income can still be declared, which in some cases may save NRA checks to prove the origin of the person's funds.
Also declared are shares held abroad, real estate owned abroad, dividends received from abroad (if tax was paid abroad, it may reduce the tax due in Bulgaria), loans received and granted in excess of BGN 10 thousand for 1 year or in excess of BGN 40 thousand balance at the end of the year.
What is the penalty for failure to file a personal tax return?
Failure to file a personal tax return is a common problem that can lead to a number of negative consequences.
The penalty for failure to file an Article 50 return on time is up to 500BGN and up to 1,000BGN for a repeat offence.
In case of deliberate non-payment of taxes, criminal prosecution may result. There are also penal consequences such as limitation of the possibility of tax benefits for children, health insurance, donations, etc. You may be banned from leaving the country until you pay the taxes you owe. You may also have a lien placed on your assets to cover the taxes you owe.
Why trust Ecovis Bulgaria for a consultation and for filing your personal tax return?
Ecovis Bulgaria is a leading company for audit, accounting, legal и tax services with over 25 years of experience in the field. Our team is made up of highly skilled and competent professionals who are ready to help you with all aspects of your tax return.
Our experts are familiar with all aspects of tax law in Bulgaria, as well as the application of double tax treaties, and can help you optimise your tax return. We have extensive experience in tax filing for individuals as well as companies.
We ensure that your tax return will be completed correctly and on time, using the latest technology and working methods to provide you with maximum accuracy and reliability.
We will offer a personalised consultation tailored to your individual needs and circumstances.
By trusting Ecovis Bulgaria, you can be assured that your tax return will be processed professionally and in accordance with all legal requirements. We'll save you time and effort so you can focus on more important things.