As a company operating in Bulgaria, you’re likely familiar with the annual tax return. This crucial document provides a snapshot of your financial health and tax liabilities. While it may seem daunting, understanding your obligations and requirements can help streamline the process.
Key Obligations:
- Annual Tax Return (ATR): This comprehensive return is due by June 30th of the following year. It encompasses information about your income, expenses, and overall financial performance.
- Financial Statements: Prepare your financial statements in accordance with International Financial Reporting Standards (IFRS) or local accounting standards. These statements are instrumental in calculating your taxable profit.
- Advance Tax Payments: Throughout the year, you’ll need to make advance tax payments based on estimated tax liabilities. The final payment, along with the ATR, is due by June 30th.
- Electronic Filing: The NRA mandates electronic filing of the ATR through their online portal. A qualified electronic signature is required.
Suspending Activities: A Tax Perspective
Even if your company suspends operations temporarily, you’re still obligated to file an annual tax return. This includes dormant companies. Similarly, companies undergoing liquidation must continue filing returns until the process is complete.
Key Takeaways:
- Corporate Tax Rate: Be aware of the standard 10% corporate tax rate in Bulgaria.
- Tax Incentives: Explore potential tax incentives and exemptions applicable to your industry or activities.
- Professional Assistance: Consider consulting with a tax advisor or accountant to ensure compliance and maximise tax benefits.
Need Assistance with Your Annual Tax Return?
At Aidos we specialise in bookkeeping and accounting services, including the preparation and filing of annual tax returns. Let us handle the complexities of tax compliance, so you can focus on growing your business.
Contact us through our contact form or book a meeting to learn more about how we can help you.
Source: National Revenue Agency (NRA)