Name of law Law amending and supplementing the law on income tax of individuals Named on the Bill a bill amending and supplementing the law on income tax of individuals acceptance date 17/11/2010 number/year Official Gazette 94/2010 Decree No 318

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on taxes on the income of natural persons, adopted by the National Assembly of the HLI 17 November 2010.

Issued in Sofia on 24 November 2010.

The President of the Republic: Georgi Parvanov

Stamped with the State seal.

Minister of Justice: Margarita Popova

LAW

amending and supplementing the law on income tax of individuals (official SG. 95 2006; amend., SG. 52, 64 and 113 (2007), no. 28, 43 and 106 since 2008, issue 25, 32, 35, 41, 82, 95 and 99 from 2009 and no. 16 and 49 of 2010.)

§ 1. In art. 8 make the following amendments and additions:

1. a new paragraph. 11:

"(11) from a source in the Republic of Bulgaria are the following benefits accrued by local entities, local sole traders or foreign legal persons and sole proprietors through a permanent establishment or a fixed base in the country for the benefit of foreign natural persons established in jurisdictions with the preferential tax regime:

1. remuneration for services or rights, except in cases where the services or rights are actually granted;

2. penalties and damages of any kind, with the exception of obeŝeteniâta charged on insurance contracts. "

2. The current paragraph. 11 becomes para. 12.

§ 2. In art. 11, para. 4, the words "judgment" shall be replaced by "registration".

§ 3. In art. 37 the following endorsements are added: 1. Al. 1 in the text before paragraph 1, after the words "shall apply" shall be inserted "income under art. 8, al. 11 and ".

2. in the Al. 2, after the words "under para. 1, item 1 – 9 "there shall be added" and in art. 8, al. 11. "

§ 4. In art. the following 44 amendments:

1. Create a new para. 4 and al. 5:

"(4) where the payer of the income from the rent or other consideration providing for the use of rights or property or undertaking is samoosigurâvaŝo person, the amount of the tax is determined and the tax withheld by the payer of income for the payment. In these cases, the amount of tax payable is determined in advance, as taxable income under art. 31 is multiplied by a tax rate of 10 percent.

(5) in the cases referred to in para. 2 person acquiring income certifies the degree of reduced ability to work with a valid to date (s) of payment of income expert decision RANSACTIONS/telk/NELKO, a copy of which shall be submitted once to the payer of income, when he is obliged to withhold and to pay the tax. "

2. The current paragraph. 4 it al. 6 and shall be amended as follows:

"(6) the tax under para. 3 and 4 shall be submitted within the time limits and in accordance with art. 65 – 68. "

§ 5. In art. 45 following amendments and supplements shall be made:

1. the title shall be replaced by the following: "verifying your paid taxable income and the tax withheld.

2. in the Al. 4, the words "of economic activity" shall be replaced by "referred to in art. 29 or 31 "and the words" of art. 43 ' shall be replaced by ' of art. 43 and 44.

3. a para. 7:

(7) the undertaking or person paying is samoosigurâvaŝoto – the income from other sources under art. 35, issued for repayment income paid in a form that provides the person acquired the income. "

§ 6. In art. 65 following amendments and supplements shall be made:

1. a new paragraph. 10:

(10) the tax under art. 46 for income under art. 8, al. 11 and will be imported from the payer of income by the end of the month following the month of the levying of income by the local entity of the sole trader, by the permanent establishment or fixed base in the country. "

2. The current paragraph. 10 it al. 11 and in her words "under art. 42, 43 and art. 49, para. 2 and 5 ' shall be replaced by "referred to in art. 42, 43, 44 and art. 49, para. 2 and 5 ".

3. The current paragraph. 11 becomes para. 12 and in her words "under art. 42, para. 5 ' shall be replaced by "referred to in art. 42, para. 6. "

§ 7. In art. 73, para. 1 creating the second sentence: "In conversion or transfer of an undertaking, the report shall be drawn up by the assignee."

§ 8. Art is created. 80 (b):

"Art. 80 (b). (1) a natural person, as is required, does not issue the document referred to in art. 9, para. 2 for income acquired by him, shall be punished with fine in extend from 500 to 100 EUR

(2) for infringements under para. 1 the fine be imposed separately for each unedited document.

(3) in the event of a repeated offence under subsection. 1 a fine of 200 to 1000 BGN "

§ 9. In § 1 of the additional provisions the following endorsements are added:

1. In point 52 creates a second sentence: "in determining the main employment relationship shall not be taken into account employment relationships referred to in paragraph 26, subparagraph (a)" and "."

2. an item 55:

"55." Jurisdictions with preferential tax arrangements "are those within the meaning of the law on corporate income tax."

Final provision

§ 10. The law shall enter into force on 1 January 2011.

The law was adopted by 41-Otto National Assembly on 17 November 2010 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

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