By the end of January 2025, businesses and self-employed individuals must submit a tax declaration for the fourth quarter of 2024. This applies to those who have paid income to individuals under non-employment relationships, such as rent or other income sources. These sources are defined by Article 35 of the Personal Income Tax Act (PITA).
What Needs to Be Reported?
If you have withheld advance tax on the above-mentioned income, you are required to submit a tax declaration. This declaration is required under Article 55, Paragraph 1 of PITA and Article 201, Paragraph 1 of the Corporate Income Tax Act (CITA). It must be submitted exclusively online through the National Revenue Agency’s (NRA) electronic services portal.
Final Taxes on Foreign Income
The declaration also applies to final taxes withheld on income paid to foreign individuals in Bulgaria. This includes income such as technical services fees, interest, and other similar types of income. Additionally, the declaration applies to final taxes withheld on dividends, liquidation shares, and similar income. These taxes must be reported for both local and foreign individuals.
Corporate Income Tax Withholding
The declaration is also necessary for withholding taxes under the Corporate Income Tax Act (CITA). For example, taxes on dividends and liquidation shares paid to foreign and local legal entities, including municipalities, must also be reported. These entities do not have to be commercial enterprises for this requirement to apply.
EU Reporting Requirements
To comply with the automatic exchange of information with other EU member states, businesses and self-employed individuals must submit additional information. This applies to those paying income from rent, royalties, or management and control services. This applies if these payments are subject to final taxation under PITA or source taxation under CITA. If these payments are made to individuals residing in another EU member state, details must also be provided in the declaration.
VAT-Registered Businesses’ Obligations
For businesses that are VAT-registered, the declaration also includes information from their accounting records as of the end of the fourth quarter of 2024. Companies must report their available cash on hand. Additionally, they must declare receivables, including loans provided by individuals, employees, management, and control contractors, among others.
If the total amount of these receivables exceeds 50,000 BGN, the company must report them.