Accountants Bulgaria: Who is Aidos?

Welcome to the website of Aidos – Accountants Bulgaria. We are a company dealing with the administration part of your business. Our services include: bookkeeping & accounting, payroll, VAT and tax preparation and company registrations.

We choose our website to be in a weblog format. In this way we are aiming to create a continuously refreshing and growing knowledge base. Below here you’ll find posts on topics related with doing business in Bulgaria, changes in the law, introductions of our clients and more, what we think may be of interest for you. By following the links in the right hand menu you can find more information about us, our services, or on specific subjects. When you feel something is missing just let us know and we will add it.

When you cannot find here what you are looking for, don’t hesitate to contact us.

Thanks for visiting us here!

The Aidos team

Aidos Accounting Bulgaria

 

Tax calendar 2016 Bulgaria

tax calendar 2016

The year is getting to an end. In our office people are getting a little nervous,  and not just because of the coming holidays.. The annual tax returns 2015 are due, the deadline is March 31st 2016. For most accountants in Bulgaria this means the next three months dynamic days full of challenges, the busy days are coming.

The annual tax return is a big job, but not the only tax in Bulgaria to take into consideration. Here you will find the tax calendar 2016, with all the the due dates. There are annual, quarterly and monthly deadlines to keep in mind. When you are not sure about your company or personal taxes leaves us a message in the form under the tax calendar 2016. That’s what we are here for!

Tax calendar 2016

Yearly deadlines;

January 31st

  • filing a declaration under article 61n of LTFA (Local Taxes and Fees Act) for taxation of the annual Licence Tax for the current year

January 31st

  • Self-insured people can fill a declaration if they want to change the type of insurance for the ongoing year (to include the risk “common sickness and maternity” or to exclude if already existing).

March 31st

  • filing an annual CITA declaration (Corporate Income Tax Act) and paying the owed Corporate tax.

April 30th

  • filing an annual PITA declaration (Personal Income Tax Act) and paying the owed personal income tax.
  • filing a report concerning paid income (different from labour contracts)

June 30th

  • paying the first installment for the Transport vehicle tax and the Immovable property tax.

October 30th

  • Paying the second installment for the Motor vehicle tax and the Immovable property tax.

Any taxpayer, who or which prepays the amount of tax due for the whole year from March 1st to April 30th, enjoys a rebate of 5 per cent of the amount of tax due.

 

Quarterly deadlines:

Filing a declaration under article 55, paragraph 1 of PITA and a declaration under article 201, paragraph 1 of CITA and paying the owed declared taxes from the previous quarter. Tax for the incomes from civil contracts, rents, dividends, Withholding tax etc. are included.

  • for the first quarter: on or before the 30th day of April;
  • for the second quarter: on or before the 31st day of July;
  • for the third quarter: on or before the 31st day of October.
  • for the fourth quarter: on or before the 31st day of January next year;

Article 61p. The licence tax shall be remitted in four equal payments, as follows:

  • for the first quarter: on or before the 31st day of January;
  • for the second quarter: on or before the 30th day of April;
  • for the third quarter: on or before the 31st day of July;
  • for the fourth quarter: on or before the 31st day of October.

Any person who pays the full amount of the tax on or before January 31st enjoys a rebate of 5 per cent of the amount of tax due.

 

Monthly deadlines:

7th

  • issuing a monthly report on the fiscal devices in trading posts concerning the previous month

14th

  • filing a Value Added Tax Law (VAT) declaration and paying the tax
  • filing a VIES (VAT Information Exchange System) declaration and paying the tax
  • filing an Intrastat declaration and paying the tax

15th

  • monthly corporation tax advance payments. Applies only for companies with revenues from sales above 3 millions BGN and which have declared expectations for profit for the year

25th

  • declaring and paying insurance installments for the previous month
  • filing a specimen 7 declaration for people who had to be self-insured for the previous month

If the deadline happens to be on Saturday or on Sunday then for a deadline will be considered the next working day.

Starting business in Bulgaria

Starting business in BulgariaStarting business in Bulgaria is becoming more and more popular. Many people and companies from all over the world are coming to Bulgaria to enjoy the pleasant business environment. Advantages are for example; Bulgarian is a member of the European union since 2007. Compared with other European countries it has a low salary level, an overview of the average salaries per sector you find here on the website of the National statistic Institute. But besides that the level of education is high.

Bulgaria is a fast developing country in the Balkans with many opportunities for investors, entrepreneurs and startups. Earlier this year Bulgaria was awarded Offshoring Destination of the Year at the European Outsourcing Association Awards 2015. Recently forbes has announced Sofia as one of the top 10 cities to launch your startup. Not only the pleasant business environment has it advantages also the favorable 10% flat tax rate gets many interested in starting business in Bulgaria

The most common form for starting business in Bulgaria is the Limited Liability Company (Ltd.). In Bulgaria there are two forms of Ltd.;

  • Single owner Ltd. (EOOD)
  • Multiple owner Ltd. (OOD)

The company can be owned by natural persons or, one or more companies. the minimum capital to be deposited is currently 1 Euro. The initial registration takes about a week. The application for a VAT number, when required, takes two weeks.

“Newly registered companies do not automatically enter the VAT system; your company has neither obligations nor rights concerning VAT in Bulgaria.
Registering for VAT becomes compulsory when; your company has more than 50’000 BGN turnover over the last 12 months or your company has business outside of Bulgaria. You send invoices to countries other than Bulgaria. You can voluntarily register your company for VAT at any time and at any turnover.”

The director(s) of the new company have to be physically present to open a bank account and deposit the capital. And sign the incorporation documents and a power of attorney in front of a notary. This will take no more than half a day. All procedures can be done from distance, in which case certified translations and apostille are required.

What we do for you starting business in Bulgaria;

  • Preparing all necessary documentation in Bulgarian and English.
  • Organize and join you to the meetings at the bank and notary.
  • File the documents at the Registry Agency.
  • Order a company stamp.
  • Collect the company documents when ready.
  • Open your current bank account(s).
  • Apply for VAT registration.

For more information on other company forms like a joint stock company or a holding company please contact us.

Our price for setting up your company is 950 Euro. This is includes all the above mentioned steps and all state and notary fees involved. We will deliver your company “ready to go”.

When you are interested in starting a company in Bulgaria please fill in our online questionnaire and one of our colleagues will contact you within 24 hours to guide you through the process.

 

Public Holidays Bulgaria 2016

Holidays Bulgaria 2016

holidays bulgaria 2016Finally the sunny days are over in Bulgaria. A good time to start thinking about and planning your holidays for 2016.

In many cases the days between the public holiday and the weekend are given as days off, and then compensated by a working Saturday later or earlier in the month. This goes for the the whole country on decision by the Government.

Here you will find an overview of the public holidays Bulgaria 2016, the most important name days and the school holidays in Bulgaria. And don’t forget, 2016 is a leap-year we have one more working day in 2016!

The Christmas holidays for this year (2015) are from December 24th till December 27th. The coming New Year’s holidays are from December 31st 2015 till January 3rd 2016. There will be one more working Saturday on December 12th this year.

The public holidays Bulgaria 2016

January 1st – New Year’s day
March 3rd – Bulgaria’s Liberation day (holidays from March 3 – March 6; and a working Saturday on March 12)

“On March 3rd Bulgaria celebrates the regaining of its freedom after being ruled for about 500 years by the Ottoman Empire. On this date, following a major military campaign lead by Russia against the Ottoman Empire in 1877-78, a peace treaty was signed in San Stefano, which led to the formation of modern Bulgaria.”

May 1st, 2nd – Easter

“On this day orthodox Christians mark Easter and the resurrection of Jesus Christ. Bulgarians celebrate it by having traditional Easter cozonac (a kind of sweetened bread) and decorating boiled eggs.”

May 1st – Labour day
May 6st – Saint George’s Day

“It is the official Bulgarian Armed Forces Day. It is celebrated as such all around the country and a traditional military parade is being organized every year in Sofia, the capital.It is also the most celebrated name day in Bulgaria.”

May 24th – The day of Bulgarian enlightenment and culture and the Slavic literacy. (holidays from May 21 – May 24; and a working Saturday on May 14)

“On this day Bulgarians celebrate the work of Saint Cyril and his brother Saint Methodius. They invented the first Slavic alphabet – the Glagolitic alphabet, which later became the Cyrilic alphabet, now used all around the Slavic world.”

September 6th -Unification Day (holidays from September 3 – September 6; and a working Saturday September 10)

“On this day Bulgarians celebrate the unification of Eastern Rumelia with the neighbouring Principality of Bulgaria back in 1885 thus forming modern Bulgaria.”

September 22nd – Independence Day Bulgaria (holidays from September 22 – September 25 and a working Saturday on September 17)
December 24th – Christmas eve

“Christmas eve is when the entire family gathers around the table. In Bulgaria Christmas eve is a bigger event than Christmas itself. Tradition dictates that there should be an odd number of meals on the table and all of them without meat, or any other animal products. This marks the end of 40 days of fasting.”

December 25th, 26th – Christmas
December 31st – New Year’s eve

School holidays 2015/2016

Christmas holidays
December 24,  2015  – January 3, 2016

Winter holidays
January 30, 2016  – February 7, 2016

Spring holidays for 1st – 11th grade
April 2, 2016 – April 10, 2016

Spring holidays for 12th grade
April 2, 2016 – April 4, 2016

When does the school year ends?
1 grade  – 24th of May 2016
2 – 4 grade – 31st of May 2016
5 – 8 grade – 15th of June 2016
8 grade – classes with intensive study on foreign language accepted after 7th grade
30th of June 2016
9 – 11 grade – 30st June 2016
12 grade – 13th of May 2016

Most important name-days in Bulgaria

Bulgaria has a strong tradition in celebrating name-days. It is common that you congratulate a person having a name day and often special celebrations are held. See here the most important ones.

  • January 1st – Vasilovden
  • January 6th – Jordanovden
  • January 7th – Ivanovden – St. John the Baptist
  • January 18th – Atanasovden – St. Athanasius of Alexandria
  • February 28th – Todorov den
  • The sixth Sunday after the Great Fast – Cvetnitsa
  • May 6th – Gergyovden
  • October 14th – Petkovden
  • October 26th – Dimitrovden
  • December 6th – Nikulden
  • December 27th – Stefanovden

A complete list of all the name-days you can find here.