Name of law
Law amending the Law on Income Tax of Individuals




Name Bill
Bill amending the Law on Income Tax of Individuals





Date of adoption
07/04/2011



Number / year Official Gazette
31/2011








DECREE № 74 Pursuant to Art. 98 pt. 4 of the Constitution of the Republic of Bulgaria
DECREE:
To be published in the "Official Gazette" Law amending the Law on Income Tax of Individuals adopted by HLI National Assembly on April 7, 2011 Released on
in Sofia on April 13, 2011
President of the Republic, Georgi Parvanov
stamped with the state seal.
Minister of Justice Margarita Popova

Law amending the Law on Income Tax of Individuals (prom. SG. 95 of 2006 .; amend., SG. 52 64 and 113 in 2007, pcs. 28, 43 and 106 of 2008, pcs. 25, 32, 35, 41, 82, 95 and 99 of 2009, pcs. 16, 49, 94 and 100 2010 and SG. 19 of 2011)
§ 1. In art. 13 in par. 5 finally adds "as well as natural persons registered as tobacco producers and farmers who determine taxable income under Art. 26 '.
§ 2. In art. 14 make the following additions:
1. In para. 1 finally added "and income from other business activities of art. 29a. "
2. In para. 2 finally added "and income from other business activities of art. 29a. "
§ 3. In art. 20 words "§ 9 of the transitional and final provisions" shall be replaced with "Art. 9a. "
§ 4. In art. 21 pt. 2, '- for income from a business as a sole trader "are deleted.
§ 5. In art. 28, para. 2 pt. 3 words "§ 9 of the transitional and final provisions" shall be replaced with "Art. 9a. "
§ 6. In art. 29 be made the following amendments:
1. The previous text becomes para. 1.
2. A par. 2:
"(2) The taxable income under par. 1 does not include benefits that are involved in the formation of taxable income under Art. 26 for previous tax years. "
§ 7. A Art. 29a:
"Taxation of income from business activity of physical persons registered as tobacco producers and farmers
Art. 29a. (1) The taxable income from business activities registered under the Value Added Tax individuals who are registered as tobacco producers and farmers is defined under Art. 26 and be taxed on the annual tax base under Art. 28.

(2) If within the current tax year the individual register or deregister under the Law on Value Added Tax, income from business activity is taxed under par. 1 of the tax year. Withholding and / or paid tax on income up to the date of registration shall be deducted in determining the quarterly advance payments under the Law on Corporate Income Tax and tax of art. 48, para. 2.
(3) natural persons registered as tobacco producers and farmers who are not registered under the Value Added Tax can choose the income from their business be taxed under par. 1.
(4) The persons under par. 3 exercise their right to choose to be taxed under par. 1 by submitting a declaration form to 31 December of the previous year.
(5) The persons under par. 3 chosen to be taxed under par. 1, apply this line of taxation for a period not shorter than 5 consecutive fiscal years.
(6) Persons under par. 1 and 3, which define taxable income under Art. 26 applied the Accounting Act, as in this case be treated as sole traders.
(7) taxable income under Art. 26, para. 1 does not include the financial result of income which according to Art. 11 were acquired during fiscal years preceding the tax year from which the taxation of income tax under Art. 14, para. 2 and for which income arises and should be charged at the time of taxing the same tax.
(8) The taxable income under Art. 26, para. 1 includes the financial result of income which according to Art. 11 were acquired during the tax under Art. 14, para. 2 and which do not participate in forming the financial result for the year of acquisition or subsequent years. "
§ 8. In art. 43, para. 8, after the words "sole proprietorship" is added "as well as individuals in the cases of art. 29a. "
§ 9. In art. 47 be made the following amendments:
1. In the title the word "sole traders" are deleted.
2. After the words "sole proprietorship" is added "as well as individuals in the cases of art. 29a. "
§ 10. In art. 48 be made the following amendments:
1. In para. 2 after the words "sole trader" shall be added "as well as income from business activities under Art. 29a. "
2. Paragraph 5 shall be amended as follows:
"(5) The overpaid tax for the tax year under Art. 14, para. 2 may be deducted from subsequent prepayments and annual payments of the tax payable by sole trader or the individual in cases of art. 29a. Improper tax deduction for interest shall be due on the Interest on Taxes, Fees and Other State Receivables. "

§ 11. In art. 50, para. 7 after the words "sole proprietorship" is added "as well as individuals in the cases of art. 29a. "
§ 12. In art. 51, para. 1 after the words "sole proprietorship" is added "as well as individuals in the cases of art. 29a. "
§ 13. In art. 64 para. 1 after the words "tax returns" insert "and the declaration of art. 29a para. 4 ".
§ 14. § 1 of the Supplementary Provisions shall be created item. 56:
"56. "Income from business to individuals" for the purposes of Art. 29a is the income from operations for the production of processed or unprocessed products of agriculture, with the exception of income from the production of ornamental plants, natural persons registered as tobacco farmers and not traders under the Commerce Act. "|| | Transitional and final provisions
§ 15. The income from the activity of natural persons registered as tobacco producers and farmers, including carrying out activity as sole proprietors, producing unprocessed plant and animal products, excluding income from the production of ornamental plants, paid in 2010 in the form of state aid, subsidies and other assistance from the European Fund for Agricultural guarantee European Fund for rural development and the state budget are not included in taxable income under Art. 29 and Art. 26 and are not subject to tax when the 2009 or previous years. These earnings are declared in the annual tax return under Art. 50 2010 in Annex 3 and 3a, Part 1, Table 1 gives the code 10.
§ 16. Declaration of art. 29a para. 4, which exercises the option by persons under Art. 29a para. 3, 2011 shall be submitted within May 31, 2011
§ 17. (1) The registered tobacco growers and farmers, regardless of their registration under the Law on Value Added Tax can choose their taxable income 2010 to determine under Art. 26 and to impose a tax on annual taxable under Art. 28.
(2) The right of choice under par. 1 is declared in the annual tax return under Art. 50 for 2010, and if it is brought before the promulgation of this law in the "Official Gazette" - by submitting a new declaration within April 30, 2011
§ 18. In the Law on Corporate Income Taxation (prom. SG. 105 of 2006 .; amend., SG. 52, 108 and 110 of 2007, pcs. 69 and 106 in 2008, pcs. 32, 35 and 95, 2009, issue. 94 of 2010 and SG. 19 of 2011) in art. 2 para. 1, p. 3, after the words "sole proprietorship" is added "as well as natural persons registered as tobacco producers and farmers who determine their taxable income under Art. 26 of the Law on income tax of individuals. "

§ 19. In the Tax Procedure Code (prom. SG. 105 of 2005 .; amend., SG. 30, 33, 34, 59, 63, 73, 80, 82, 86, 95 and 105 in 2006, pcs. 46, 52, 53, 57, 59, 108 and 109 of 2007, pcs. 36, 69 and 98 in 2008, pcs. 12, 32, 41 and 93 of 2009 SG. 15, 94, 98, 100 and 101 of 2010 and SG. 14 of 2011) in art. 191 create par. 6 and 7:
"(6) Paragraph 2 does not apply imposed preliminary injunctions.
(7) The terms under par. 2 does not run in the following cases:
1. when enforcement of the act or enforcement proceedings is stopped - to the grounds for arrest;
2. at a given permission for postponement or rescheduling of public liabilities - for the period of postponement or rescheduling, or the commencement of enforcement in cases of art. 183, para. 4; 3
. in a request for a new evaluation or control of art. 236 - until the entry into force of the assessment;
4. on appeal of a sale made under Art. 256 - until the entry into force of the decision of the administrative or judicial authority. "
§ 20. The terms of art. 191, para. 2 and art. 193, para. 4 of the Tax-Insurance Procedure Code shall commence from January 1, 2011 to grant interim relief proceedings or outstanding realization of property under Art. 191, para. 1, as in the cases of art. 193, para. 1 when compared to property imposed interim measures or initiated enforcement proceedings and accordingly bankruptcy proceedings before that date.
§ 21. In the Law on Local Taxes and Charges (prom. SG. 117 of 1997 .; amend., SG. 71, 83, 105 and 153 in 1998, pcs. 103 of 1999 . No.. 34 and 102 in 2000, pcs. 109 of 2001, pcs. 28, 45, 56 and 119 of 2002, pcs. 84 and 112 of 2003, pcs. 6, 18 36, 70 and 106 of 2004, pcs. 87, 94, 100, 103 and 105 of 2005, pcs. 30, 36 and 105 of 2006, pcs. 55 and 110 of 2007, pcs. 70 and 105 of 2008, pcs. 12, 19, 41 and 95 of 2009, pcs. 98 2010, pcs. 19 and 28 in 2011) in § 26 of the transitional and final provisions of the Law amending and supplementing the Law on local taxes and fees (SG. 98 of 2010), a new para. 4:
"(4) In the event that within the period under par. 1 municipal council has not determined the amount of tourist tax for 2011 the rates set out in par. 2. "
§ 22. This Act shall enter into force on January 1, 2011, with the exception of § 8, which enters into force from the beginning of the month following the month of promulgation of this law" Official Gazette ".
The law was adopted by the 41 th National Assembly on April 7, 2011 and was affixed with the official seal of the National Assembly.
Chairman of the National Assembly Tsetska Tsacheva
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