The tax campaign for 2024 has started. In our article, we have outlined the important deadlines and new developments that the persons and entities should consider this year.
News in 2024
Change in the Minimum Wage (MW) and Minimum Social Security Income (MSSI)
As of the beginning of 2024, the minimum wage in the country is now 933 BGN.
The minimum monthly amount of social security income for self-employed persons also increases to 933 BGN.
As of January 1, 2024, the maximum amount of social security income is also changing. It increases by 350 BGN to 3750 BGN.
Single account for paying taxes
Taxes this year will now be paid to a single National Revenue Agency (NRA) account for taxes at Bulgarian National Bank (BNB), and not to the accounts of the territorial directorates of permanent residence. Starting this year, the date on which the money is received in the NRA account is considered as the leading date / it is not the date of the transfer/. Therefore, the NRA recommends that last minute payers use a virtual or physical NRA POS terminal.
Important for Individuals
Start of the tax campaign for individuals
As of January 10, 2024, the submission of income declarations of individuals for 2023 begins. Declarations can be submitted either at NRA offices, by mail, or electronically.
Pre-filled data
The NRA reports that over 85% of individuals file their declarations electronically. To do this, you need a Personal Identification Code (PIC) issued by National Revenue Agency or electronic signature.
At the beginning of March, the electronic service of NRA is expected to be launched, which will include pre-filled data in the declaration for incomes received during the past year deriving from employment and civil contracts, property rents, etc.
How can you get a tax rebate?
If you submit your declaration online and pay the due tax by April 1, 2024, you can benefit from a 5% rebate on the portion of the tax due that has not already been paid in advance. The maximum rebate allowed amounts to 500 BGN. A condition to use it is not to have outstanding public debts.
Deadline
The deadline for filing the annual tax declaration for individuals is April 30, 2024. This is also the deadline for using tax rebates.
Tax allowance for children and children with disabilities
This year, the current amount of the most common tax allowance remains unchanged – maximun amount to be received for 1 child should be 600 BGN, 1200 BGN for two children, and 1800 BGN for 3 or more children. Parents raising children with disabilities can simultaneously benefit from both allowances.
Annex 13 to the declaration
In this annex, individuals will be able to declare their non-taxable incomes. These include incomes deriving from inheritances, vouchers, property transfers, gambling, etc.
Important for Legal Entities and Traders
Declarations for traders
From March 1 to July 1, 2024, is the deadline for those operating as traders, sole traders, and farmers to submit their declarations.
This is also the deadline for companies to declare corporation tax, expenditure tax, revenue tax for budgetary enterprises, and tax on ship operation activities. The deadline for paying these taxes is July 1, 2024.
Change in corporate tax for multinational companies
As of January 1, 2024, the corporate tax rate for multinational companies has increased to 15%. There will be no advance payments for this tax this year. Thus, the first real receipts from this tax will come in 2025. According to NRA information, this new tax will affect around 700 companies.
Declaration of no activity
Companies that have not been active in 2023 should submit a declaration under Art. 38, para. 9(2)(a) of the Accountancy Act. by July 1, 2024. This is the so-called “declaration of no activity”. It is filed once, in the first year when the legal entity has not operated.
Annual Financial Statement (AFS)
September 30, 2024, is the deadline for traders to publish their annual financial statement for 2023 in the Commercial Register.
In the event you need assistance with tax and tax liabilities related cases, you can schedule a consultation directly through the LegalMasters.bg website or contact the team through the contact form, by email contact@legalmasters.bg, or by phone 0893050449.
Online Service: Through LegalMasters.bg, you can easily and entirely online request the submission of the Annual Financial Statement or Declaration of No Activity for your company, and we will ensure they are submitted on time.
Dear readers, all materials published on LegalMasters.bg are for informational purposes only. These materials reflect the personal views and professional opinions of the respective attorney from the team and should not be considered as comprehensive legal analyses or individual legal advice for you. Before taking or not taking legal actions on the issues discussed, seek professional legal advice for your specific case.