Tax Returns to be Submitted Electronically Starting 2018
Bulgaria introduced a mandatory electronic filing system for tax returns. The new corporate obligations have entered into force after December 31, 2017, which means that all companies in Bulgaria have been required to comply with this process for their annual corporate tax returns for 2017. Our team of lawyers in Bulgaria can give you complete details about this new system and the possible penalties that apply for incorrect of late filing.
New policy for mandatory tax return submission
The Bulgaria Government released a statement highlighting the importance to comply with the new tax return filing obligations. Starting with 2018, all companies are required to submit the annual tax returns via an e-filing system. What’s more, the payments can be made online, at a chosen bank in Bulgaria or by post.
The penalty for noncompliance is generally sanctioned with a fine that has a minimum value of 500 BGN. What’s more, company directors in Bulgaria are also liable for a fine in case of corporate noncompliance. The fine applicable in their case has a maximum value of 200 BGN.
Tax return compliance for companies in Bulgaria
In Bulgaria, the tax year is the same as the calendar year and both the tax return and the final payment have to be paid by March 31st the year following the tax year for which the assessment was made. Companies in Bulgaria submit monthly or quarterly tax payments in advance and the periodicity is determined according to the taxable profit for the previous year or for the current year in some cases.
Taxpayers in Bulgaria who fail to comply with the tax filing requirements are subject to interest penalties. In some cases, administrative penalties can apply. One of our lawyers in Bulgaria can give you more information about noncompliance.
Contact our law firm in Bulgaria for more information about the Corporate Income Tax Act and other relevant tax rules and regulations.