How to pay less corporate tax in advance during the year without paying interest to budget

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Under Corporate Income Tax Act (CITA), corporate taxpayers are obliged to make monthly or quarterly advance payments of corporate tax.
Entities with net sales for previous year exceeding BGN 3 million are obliged to make monthly advance installments. All other entities have to pay quarterly advance corporate tax. CITA also provides for exceptions where taxpayers do not make advance payments if:

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Annual financial statements “at one spot”

chess-novacon-bulgaria-the-payroll-and-accounting-companyEvery year the companies must publish annual financial statements for the past year, as the deadline for sole proprietors (which are subject to statutory audit) is 31st May, for limited liability companies (LLC) – by 30th June, and for all other entities– by 31st July.

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VAT effects related to contribution in-kind

novacon.bulgaria-the-payroll-and-accounting-company-contribution-in-kindUnder Value Added Tax Act (VAT Act), the contribution in-kind is treated as a “non-delivery”. I.e. the transfer of an asset from one company (X) to another (Y) via contribution in-kind does not lead to VAT accrual.

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Is VAT due for advance payments before the Company is VAT registered?

payment-novacon.bulgariaValue Added Tax Act (VATA) treats advance payments received before VAT registration of the Company as a specific case for VAT accrual.

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What are the complications associated with the VAT “cash accounting” regime?

http://novacon.bg/blog/wp-content/uploads/2013/12/value-added-tax-novacon-bulgaria.jpgSince the beginning of 2014, the Value Added Tax Act (VATA) introduced an alternative VAT treatment regime– i.e. “cash accounting” regime. In a few words, this regime allows the supplier to pay VAT to the budget only following receiving the transfer from the client, while the client uses the tax credit only when the amount is paid to the supplier.

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Sole Proprietor or an Ltd?

investment-novacon-the-payroll-and-accounting-company-bulgariaPerhaps any entrepreneur, when starting up a business, is probably asking himself how to do it – as a sole proprietor or via an Ltd?

I will not delve into legal analysis and comparisons, but will point a few basic tax points, assuming also that the owner of the Ltd is an individual. Let’s also assume that the individual, acting as an owner of an Ltd or as Sole Proprietor, does not pay social contributions on other grounds and does not receive other types of income.

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Inherited property taxes

fibo-clock-novacon-the-payroll-and-accounting-company-bulgariaTax issues, related to inherited property can be considered in the light of acquiring inherited property, as well as of subsequent sale or exchange of the inherited property. Answers to these questions can be found in the Personal Income Tax Act (PITA) and the Local Taxes and Fees Act (LTFA).

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Tax aspects of a donation to а Bulgarian citizen for the purposes of medical treatment

red-cross-donation-box-novacon-bulgariaEvery Bulgarian citizen, who needs treatment in Bulgaria or abroad, can receive donation from individuals or organizations, covering whole or part of the medical expenses.

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Loans, interests and partial VAT credit

loans-novacon.bulgariaIt is a well-known fact that when a company performs both VAT taxable and non-taxable sales under the meaning of the Value Added Tax Act (VAT Act), for all purchases which cannot be assigned to one of these categories of sales, the company is entitled to a partial VAT credit right. 
In relation to the above, an interesting case occurs when the company extends a loan.

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Tomatoes and the VAT credit

red-tomatoes-novacon.bulgariaCan I use the tax credit for this …?” or “Will this … be recognized as a of the company?” are frequently asked questions.

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