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
25/11/2009



Number / year Official Gazette
95/2009







DECREE № 385
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 November 25, 2009 Released on
in Sofia on December 1, 2009
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 and 82 of 2009)
§ 1. In art. 13 be made the following amendments:
1. In para. 1, p. 1, letter "a" words "irrespective of the date of acquisition" is replaced by "if between the date of acquisition and the date of sale or exchange is more than three years."
2. Paragraph 2 is amended as follows:
"(2) It is not considered income property received by inheritance, and donation and received property with restored ownership under a legislative act."
Third. Paragraph 3 shall be repealed.
4. A new paragraph. 4:
"(4) No tax is determined at the date of acquisition of shares, which were obtained against non-cash contributions in companies."
5. Former para. 4 becomes para. 5 and the words "para. 1 and 2 "are replaced with" para. 1, 2 and 4 ".
§ 2. In art. 22, para. 1, p. 3, after the words "Center" Fund for Treatment of Children "a comma and added" Center "Fund for Assisted Reproduction" and / or Center "Fund for transplantation."
§ 3. Article 22 is repealed.
§ 4. In art. 23 is amended as follows:
1. In item. 1, 'TEMP / NEDC "are replaced by" TEMP / Delco / NEDC. "
2. Section 5 is repealed.
§ 5. In art. 24, para. 2 pt. 8, the words "Art. 82, para. 3 "are replaced with" Art. 82, para. 5 ".
§ 6. In art. 25 be made the following amendments:
1. The previous text becomes para. 1.
2. Created al. 2 and 3:
"(2) The annual tax base under par. 1 self-employed persons received income from employment under § 1, p. 26 letter "i" of the additional provisions shall be reduced and contributions to self-insured person is obligated to make for the tax year at his own expense under of the social insurance Code and the health insurance Act.

(3) The annual tax base for income received as a seafarer is 10 percent of the defined under par. 1 annual tax base. "
§ 7. In art. 26, para. 2 t. 3 is repealed.
§ 8. In art. 29 be made the following amendments:
1. A new item. 1:
"1. 60 percent of operating income of natural persons registered as tobacco producers and farmers producing raw products from agriculture, with the exception of income from the production of ornamental plants; ".
2. Previous item. 1 becomes item. 2 and in her letter "a" is amended as follows:
"a) operating income of individuals for the production of processed or unprocessed products from agriculture (including from the sale of produced ornamental plants) from forestry (including the collection of wild herbs, mushrooms and fruits), of hunting and fisheries; '. 3
. Previous item. 2 becomes item. 3
§ 9. In art. 33 para. 6 make the following additions:
1. In pt. 5 finally put a comma and added "when the contribution is subject property, income from the sale or exchange of which are not taxable within the meaning of Art. 13 para. 1 at the date of entry of contribution to the commercial register; ".
2. A pt. 9:
"9. documented cost of acquisition of the property - subject of the contribution in kind to a company - in the case of sale or exchange of shares received for non-cash contributions to the company, except under item. 5. "
§ 10. A Art. 37a:
"Recalculation of final tax under Art. 37
Art. 37a. (1) A foreign individual who is resident for tax purposes in a country - member of the European Union or another country - party to the Agreement on the European Economic Area may choose to recalculate the final tax on income under Art. 37. When the foreign person chooses to recalculate the final tax recalculation shall be carried out for all income acquired by the person during the year, subject to final tax under Art. 37.
(2) Where a foreign person chooses to recalculate the final tax on income under Art. 37 recalculated tax equal to the tax on the total annual tax base or tax annual tax base of art. 28, which would have been payable on such income if they are acquired by a local individual. Resident person has incurred expenses related to income in the first sentence, which would have been payable tax costs pursuant to the Law on Corporate Income Tax, if they were done by a local individual with this tax increase the amount of tax adjustments.

(3) Where the amount of paid-off tax income of art. 37 exceed the recalculated tax under par. 2 for the same income, the difference be refunded the amount of the final tax under Art. 37 that the foreign person can not deduct from the tax on such income in the country where the person is resident for tax purposes.
(4) Choosing to recalculate the final tax under Art. 37 is exercised by filing an annual tax return under Art. 50. In the tax return includes all other income subject to declaration by the foreign individual.
(5) The recovery of tax under par. 3 is performed under the Tax and Social Insurance Procedure Code.
(6) Paragraphs 1-5 shall not apply in cases where the foreign person is resident for tax purposes of state - party to the Agreement on the European Economic Area, a non - member of the European Union, which Bulgaria :
1. no enforceable agreement for the avoidance of double taxation or
2. has an effective convention for the avoidance of double taxation, which is not provided:
a) the exchange of information or
b) cooperation in tax collection. "
§ 11. In art. 42 make the following additions:
1. In para. 2 Finally, 'or compulsory insurance abroad "and a second sentence:" The monthly tax on self-employed income from employment under § 1, p. 26 letter "i" of the additional provisions shall be determined taxable income under Art. 24 for the respective month shall be reduced by contributions paid in advance by company contributions to self-insured person is obligated to make its own expense under the Social Insurance Code and the Health Insurance Act. "
2. In para. 4 finally added "and the income gained as a seafarer - a tax rate of 1 percent."
§ 12. In art. 43, para. 9, "TEMP / NEDC" are replaced by "TEMP / Delco / NEDC."
§ 13. In art. 48 create par. 6 and 7:
"(6) The tax on annual taxable income of the business as a sole trader is allowed to retain up to 60 percent of persons registered as farmers, the annual tax base of activity in the production of unprocessed plant and animal production in terms of assignment of corporate tax under Art. 189b of the Law on Corporate Income Tax.
(7) The assignment of tax under par. 6 constituting state aid to farmers can not be used by a person who is an undertaking in difficulty. "
§ 14. In art. 49 make the following additions:
1. In para. 1 after the words "annual tax base" insert "under Art. 25, para. 1 and 3 ".

2. In para. 3, after the words "under Art. 25 "insert" paragraph. 1 and 3 ". 3
. A par. 8:
"(8) In determining the annual tax base and the annual tax pursuant to the preceding paragraphs shall not include income from employment under § 1, p. 26 letter" i "of the additional provisions." || | § 15. Article 51 is amended as follows:
"Submit AAR
Art. 51. (1) Persons engaged in economic activity as traders under the Commercial Law, including sole proprietors, together with the annual tax return and submit an annual activity report.
(2) Annual Report filed no persons under par. 1, which meet the following conditions:
1. They have not been active during the tax year;
2. not reported for tax year revenue or expenditure in accordance with accounting legislation. "
§ 16. In art. 52 made the following amendments:
1. The previous text becomes para. 1 and in it:
a) t. 1, 'the employer under the main employment "are replaced by" as of December 31 of the tax year the person has only one employer and he ";
B) in item. 2 the words "except those mentioned in Art. 13 para. 3 "shall be deleted;
C) pt. 4 finally put a comma and added "except under Art. 37a. "
2. A par. 2:
"(2) Notwithstanding the circumstances under par. 1 local individuals are required to file an annual tax declaration in the case of art. 50, para. 1 pt. 5 and par. 3. "
§ 17. In art. 54, para. 1, 'local physical "are replaced by" physical. "
§ 18. In art. 58 made the following amendments:
1. The previous text becomes para. 1 and in it in the first sentence the word "paid" is replaced by "imported" and the second sentence after the word "filed" insert "or subject to submission."
2. A par. 2:
"(2) At the request of the foreign person certificate of paid tax on the total annual tax base and / or paid tax on annual taxable under Art. 28 is issued separately for individual types of income under Art. 8 except where the income is realized from a fixed base. "
§ 19. In art. 66 be made the following amendments:
1. The previous text becomes para. 1.
2. A par. 2:
"(2) The overpaid tax or unduly paid taxes on income under Art. 37, para. 1, p. 1-9 and art. 38 acquired by foreign individuals shall be reimbursed by the territorial directorate of the National Revenue Agency in which the tax is payable on income of the person. "
§ 20. In art. 68 shall be created para. 4:

"(4) The overpaid tax or unduly paid taxes on income under Art. 37, para. 1, p. 10-12 and art. 38 acquired by foreign individuals shall be reimbursed by the territorial directorate of the National Revenue Agency in which the tax is payable on income of the person. "
§ 21. In art. 73, para. 4 is a second sentence: "Upon termination of liquidation or bankruptcy of enterprise report under par. 1 is provided in the terms and procedure for submission of tax return under Art. 162 of the Law on Corporate Income Tax. "
§ 22. Article 83 is amended as follows:
" Art. 83. (1) A person who fails to fulfill its obligation under Art. 51, para. 1 to submit an annual activity report or submit it on time, be liable to a fine or a pecuniary penalty of up to 500 Levs, unless subject to a more severe punishment.
(2) For repeated violation under par. 1 the fine or penalty of up to 1000 Levs. "
§ 23. § 1 of the additional provisions be made the following amendments:
1. In item. 21 words "Unprocessed vegetable and animal products" are replaced by "unprocessed products of agriculture."
2. In item. 26 establishes letter "and":
"i) legal relations, regardless of the reason for their occurrence, with partners and cooperative members, as well as with shareholders holding more than 5 per cent of the capital of a joint stock company application of personal work in companies and cooperatives in which they are partners, cooperative members or shareholders. "
third. Created t. 52, 53 and 54:
"52. "Basic employment" is employment under p. 26, which has arisen first.
53. "Annual Report" is a statement of art. 20, para. 4 of the Law on Statistics.
54. "Seafarer" is a natural person occupying a position under an employment contract as a member of the crew of a seagoing ship registered in the register of ships of the State - State of the Union, whether located on the coast or on board a vessel holding a license and evidence of additional and / or special training acquired under the ordinance of art. 87, para. 1 of the Merchant Shipping Code. "
Transitional and Final Provisions
§ 24. When income under § 1, p. 26 letter" i "of the additional provisions is accrued but not paid until December 31, 2009, the amount of advance tax due is determined in accordance with Art. 42 based on the monthly tax base determined by paid during the corresponding month income.
§ 25. Article 51 shall apply in respect of the annual activity report for 2009 Annual financial statements for 2009 and audit reports to them are submitted to the National Revenue Agency.

§ 26. Retention of tax under Art. 48, para. 6 applies after a positive decision by the European Commission for compatibility with the rules on state aid. Provided that the European Commission gives a positive decision by March 31, 2011, the assignment can also be applied to the 2010 assignment prepayments of tax farmers are not allowed to date of the positive decision of the European Commission.
§ 27. Administrator of state aid under Art. 48, para. 6 The Minister of Agriculture and Food. Minister of Agriculture and Food shall notify the European Commission under the terms and procedures laid down in the State Aid Act.
§ 28. The tax on annual taxable income of the business as a sole trader transferable under Art. 48, para. 6 in the period to December 31, 2013
§ 29. The advance tax on income from employment of seafarers accrued after December 31, 2009 for previous tax years shall be determined in accordance with Art. 42, para. 4, in force at the date of accrual of income.
§ 30. This Act shall enter into force on January 1, 2010
law was adopted by the 41 th National Assembly on November 25, 2009 and was affixed with the official seal of the National Assembly.
Chairman of the National Assembly Tsetska Tsacheva
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