Income Reporting Deadline for 2024: Submit by February, 2025

By February 28, 2025, businesses and self-employed individuals who have paid income to individuals during 2024, including income from employment relationships, must submit an electronic report to the National Revenue Agency (NRA). This includes reporting all income paid and taxes withheld.

What Needs to Be Reported?

The report under Article 73, Paragraph 6 of the Personal Income Tax Act (PITA) must include taxable income paid from employment relationships, as well as taxes and social security contributions withheld. Employers are also required to report certain non-taxable income provided to employees. Examples include:

• Meal vouchers given to employees, which are exempt from taxation according to the Corporate Income Tax Act.
• Compensation for the first two days of sick leave.
• One-time benefits for childbirth, adoption, marriage, and other personal events, up to 2,400 BGN.
• Non-taxable daily per diems for business trips, if the amount paid to an individual exceeds 1,000 BGN.
• Other non-taxable benefits.

Income from Non-Employment Relationships

The report under Article 73, Paragraph 1 of PITA covers income paid to individuals from non-employment relationships. This includes income from activities such as freelancing, royalties, rent, or other similar compensation for using rights or property.

It also includes income that is subject to final tax, such as dividends, liquidation shares, and monetary and non-monetary prizes from games or contests. Additionally, it covers income from transferring rights or property.

The report must also include non-taxable income. This income is specifically listed in Article 73, Paragraph 1 of PITA and Section IV of the approved form’s nomenclature.

How to Submit the Report

To simplify the process, the NRA provides a client application on their website. Employers can view the data they have declared through two electronic services, which are accessible with a Personal Identification Code (PIC) or a Qualified Electronic Signature (QES):

1. Provide a report on the current status of data declared with the report on income paid under Article 73, Paragraph 1 of PITA, including taxes and social security contributions withheld.
2. Provide a report on the current status of data declared with the report on income paid from employment relationships under Article 73, Paragraph 6 of PITA.

Filing the Pre-filled Tax Declarations

The data submitted to the NRA will be included in the pre-filled tax declarations. These declarations will be available in the Electronic Services Portal at the beginning of March 2025.