In Focus

The Annual Personal Income Tax Returns Campaign for Year 2022 Is in Progress

February 13, 2023

The Annual Personal Income Tax Returns Campaign for Year 2022 Is in Progress

The Individuals’ Income Taxes Act contains specific criteria for determining whether you are a Bulgarian tax resident or non-resident individual during the year.

If you qualify as a Bulgarian tax resident you have to declare your entire income from Bulgarian and foreign sources as well as you have additional obligations to report certain information to the Bulgarian tax authority in your annual personal income tax return, including:

(i) The real estates which you own outside Bulgaria as at 31 December 2022;

(ii) Your shareholdings in foreign companies as at 31 December 2022;

The above data shall be reported to the Bulgarian tax authority for the year of acquisition and each consecutive year in which you are Bulgarian tax resident and you still own the relevant property, stocks or shares

(iii) Monetary loans exceeding the total of BGN 10,000 granted or received during the year and still outstanding as at 31 December 2022;

(iv) Outstanding residues of monetary loans granted or received during 2022 and the preceding five tax years, totaling over BGN 40,000 as at 31 December 2022.

The information required refers to monetary loans granted to or received from other individuals and entities with the exception of loans from credit institutions

Deadlines:

31 March 2023 – early deadline for electronic submission of the annual tax return and payment of tax with discount

30 April 2023 – final deadline for submission of the annual tax return and payment of tax

30 June 2023 – final deadline for submission of the annual tax return and payment of tax  by individuals with business income as traders, including registered sole traders and farmers

30 September 2023 – deadline for single submission of a corrective annual tax return after expiry of the final deadline in case of omissions or mistakes established in the already submitted tax return

If you have any questions or need assistance, please do not hesitate to contact Sonia Pandelieva at e-mail: Sonia.Pandelieva@afa.bg and Liliya Nakasheva at e-mail: Liliya.Nakasheva@afa.bg

AFA Consultants OOD, 38, Oborishte Str., 1504 Sofia, Tel.: +359 2 943 37 00

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