Bulgaria begins collecting income tax for 2012

Written by on January 2, 2013 in Bulgaria, Business, News - No comments

On the first working day of 2013, Bulgaria’s National Revenue Agency (NRA) is already accepting income tax filings for the previous year. The reward for getting one’s tax return in early is getting a five per cent discount on the amount owed (if filed by February 11).

Going by the experience of previous years, however, when the tax deadline day on April 30 invariably results in NRA and post offices swamped by last-minute filings, it was unclear how many people actually filed their returns early. (A separate five per cent discount is offered for fling one’s tax returns online, using an e-signature, but that is not cumulative with the early filing discount).

This year’s additions to the tax code are two – the 10 per cent tax on interest from term deposits, which banks will withhold at the expiration of the term and pay directly to the NRA, and the introduction of a single account for each taxpayer.

Concerning deposit interest, the new tax will affect all term deposits due after January 1, even if the interest was paid in advance before the law went into effect, NRA spokesperson Rossen Bachvarov told local broadcaster Darik Radio. “The law clearly says that the income is seen as acquired not at the point of payment, rather at the expiration of the term of the deposit,” he said.

The introduction of the new single taxpayer account means that all payments will go toward settling the oldest existing tax dues, if any, the sole exception being the amounts temporarily in abeyance (tax dues that are being appealed, for example).

(Photo: forwardcom/sxc.hu)

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