Delchev & Partners

3. Other Changes Concerning Filing Obligations and Provision of Information

(i) Deadline for issue of certificates for received non-employment income  

According to the changes to the Act the companies payers of non-employment income shall be obliged to issue the certificates to the individuals recipients of the income by 15 April of the following year.  The old rule determined that the issue of the certificates depended on the request of the individual only.  Practically, the need for setting up a deadline for issue of the certificates is correlated to the already existing administrative sanction in case such a certificate was not issued to the individual.

(i) Reports about incomes received by individuals – foreign and Bulgarian tax residents 

Incomes, paid to foreign tax residents, taxed by Bulgarian WHT during the respective year, should be included in the standard declaration filed by the company – payer of the income which is filed by 30 April of the following year.

In order to reduce the administrative burdens as regards reporting of incomes paid to a Bulgarian tax residents during the tax year, a threshold of BGN 5000 (app. 2 500 euro) is determined.  (The types of income which fall within the threshold criteria are: income from disposal of financial instruments, income from additional voluntary social security contributions received after receiving the right of additional pension, interest income derived from deposits in foreign bank institutions, incomes from gambling, received annuities or lease income).  From now on the specified incomes shall be reported by the payer by 31 March of the following year, provided that the income exceeds BGN 5000 per persons recipient.

This Tax Alert has been prepared by DELCHEV & PARTNERS for information purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Readers should not act upon this without seeking professional counsel.