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Do You Need to File an Annual Tax Return?
At this time of year, many people ask whether they need to file an annual tax return for the previous year. Understanding your tax obligations is crucial to avoid penalties and ensure compliance with Bulgarian tax regulations. In this article, we will outline the main cases when individuals must file an annual tax return in Bulgaria.
Who Needs to File an Annual Tax Return?
You are required to file an annual tax return if you have received any of the following types of taxable income based on your total annual tax base:
- Rental income;
- Income from non-employment relationships; (e.g., civil contracts)
- Income from rights and property transfers;
- Income from cash prizes;
- Interest income;
- Income from freelance activities;
- Income from dividends and liquidation shares;
- Income from the exchange of shares and units received from foreign sources;
- Return from life insurance;
- Interest on bank accounts received from a foreign source;
- Outstanding portions of granted cash loans exceeding 10,000 BGN during the tax year;
- Income from personal work in companies where you are an owner, partner, shareholder, or member;
- Income from stock market investments such as shares, bonds, and distributed investments.
Other types of income may also be subject to taxation, so it is always advisable to check with the National Revenue Agency (NRA) or a tax professional.
How to File Your Tax Return
Tax Return Filing Deadline
The deadline for filing your annual tax return is typically between January 10th and April 30th of the year following the one in which the income was received.
Where to Obtain the Tax Declaration Forms?
You can obtain the required tax declaration forms from:
- Any National Revenue Agency (NRA) office
- The official website of the National Revenue Agency
Ways to Submit Your Tax Return:
You can file your tax return in one of the following ways:
- Online, using a personal identification code or a qualified electronic signature
- In person, at the NRA office corresponding to your permanent address
- By post, with a return receipt at the post office
Tax Deduction for Online Filing
If you file your tax return online, you can benefit from a 5% tax deduction, up to a maximum of 500 BGN. To qualify for this deduction, you must meet the following conditions:
- Submit your tax declaration electronically by March 31st
- Have no outstanding public obligations at the time of submission
- Pay any additional tax due by March 31st
Once you submit your tax declaration, you will receive a unique confirmation number verifying your submission.
Filing your annual tax return in Bulgaria is a straightforward process if you understand the requirements and deadlines. By taking advantage of the online submission discount, you can save money and ensure compliance with Bulgarian tax laws. If you have any doubts, consider consulting a tax professional to help you navigate the process smoothly.
Contact ASB Accounting Services Bulgaria for expert guidance on company registration, tax compliance, and financial planning!