Important Tax Changes – 2015
2015 brought serious and important changes in Bulgaria’s business environment which ultimate goal is affecting positively the overall taxation process, its results and availability/attractiveness. All participants in the taxation process are to adhere to their legal obligations and exercise their inherent rights much more easily.
Online Tax Return Submission
The online tax return submission process was utterly changed aiming at availability improvement of this procedure for businesses as well as individuals. In 2015 this type of tax documentation will be submitted online by the Revenue Agency through a personal identification code (PIC) that is issued by the relevant local office of the National Revenue Agency.
This innovation will significantly increase the number of online tax return submissions which used to happen online through e-signature only. The use of e-signature is bound to download and support that require additional technical knowledge as well as annual installments. By using their own PIC every tax subject is able to submit their tax return in a quick, easy and timely manner taking vantage of the tax break given for online submission of annual revenue data.
Taxation of non-labor income
One of the important tax changes is related to non-labor income. There has been no direct tax levy on this income in the last quarter of the year (October – December) – individuals had to calculate and include this tax in their tax returns being obliged to pay it at the beginning of the following year. From 2015 tax subjects will have the right to choose whether to have this tax directly imposed by the employer or calculate it themselves and pay it upon tax returns submission. That would help individuals present correctly their duties and would undoubtedly increase this tax income in the last quarter of the year.
Those and other tax changes in 2015 are expected to result in positive business development with no unnecessary hassle in Bulgaria’s fragile economic and political conditions.