Dimov&Tashev Law Firm

January 22, 2013 | Recent changes in tax legislation




New rules for upfront payment (advance installments) of corporate income tax (CIT):

  • Taxable persons shall pay monthly or quarterly advance installments of corporate income tax (CIT) calculated on the basis of the tax profit forecast for the current tax period;
  • Taxable persons whose net sales revenues in the previous year do not exceed BGN 300,000 (EUR : BGN= 1 : 1.95583) will not be obligated to make upfront payments (advance installments).
  • Taxable persons with net sales revenues throughout the previous year exceeding BGN 300,000, however - up to BGN 3,000,000, will have to make quarterly upfront payments (advance installments).
  • Taxable persons with a net revenue exceeding BGN 3,000,000 will have to make monthly advance installments.
  • Advance installments for the current tax year have to be reported in the corporate income tax return for the previous year.


Deadline for remittance of tax on expenses has also been changed

As of 2013, tax on expenses in the amount of 10% will be determined on an annual basis, whereas the deadline for remittance thereof will be 31 March of the year following the reporting year.





As of 2013, a 10% tax on interest income on deposit accounts has been introduced. The tax is final and is levied on the gross income acquired by local individuals from interest on deposit accounts in commercial banks. The tax would be withheld and paid by the commercial banks, as well as branches of foreign banks in the country by the end of the month following the month of income acquisition. The tax is paid to the state budget - to the account of the territorial directorate of the National Revenue Agency, as per place of registration of the income payer. In the event of advance payment of interest income on deposit accounts to the benefit of local individuals, such income is deemed to have been acquired on the maturity date of the deposit or the date of its termination (if terminated ahead of term).





Invoicing terms and rules have been changed in the VATA in order to clearly indicate the Member State whose invoicing rules shall apply. There have been changes made to the cross-border and domestic supplies and electronic invoicing. Paper invoices and electronic invoices should be treated equally, regardless of the choice of the taxable person. In this regard, a new provision (Article 111a) has been introduced, whereby documentation of supplies with place of performance (settlement) on the territory of another Member State shall be made pursuant to Chapter Eleven of VATA, in case when the tax for the relevant delivery is due by the recipient and the provider is a person complying with the following conditions:


  • a person who has established his independent economic activity on the territory of the country or has a fixed establishment in the country from which the supply is made or, in the absence of the aforementioned two conditions - where a person has his permanent address or usual place of residence in the country;
  • a person not established in the Member State in whose territory the place of supply (settlement) is, or the person's permanent establishment in such Member State does not participate in the respective delivery.


Electronic invoices and electronic notices thereto are considered to have been issued on the date when the supplier or any person acting on its behalf, has provided invoices and the notices thereto so that they can be received by the client.


As of 2013, uniform tax account for all firms and individuals has been introduced together with a uniform payment order, whereby all public duties are to be paid. Any entity (company) or citizen can electronically verify whether there are any outstanding payments to the state with respect to income tax, corporate tax, VAT, social security. The website of the National Revenue Agency (NRA) offers such new service online. Specific data about the above mentioned obligations would be available to anyone with a personal identification code (PIC) or electronic signature.


New VAT rules in the EU. Changes provide for paper invoices and electronic invoices to be treated equally, thus allowing companies to choose the best billing solution for them. The new rule could save the businesses in Europe up to € 18 billion per year from reduced administrative costs. Member States can thus allow small businesses with a turnover up to € 2 million to declare or pay the due VAT after they receive or make payments, as opposed to the current regime - i.e. when issuing the invoice.