Leinonen Bulgaria Newsletter January 2015

Bulgarian taxation news in 2015 by Leinonen

Dear Business Partner,

We will continue to keep you informed about important topics concerning Bulgarian legislations and tax changes, especially in payroll and accounting fields.

One hour free tax consultation!

In order to get to know us better, we will be glad to provide you one hour tax advice free of charge. To find out more, please contact  Ms. Albena Stoyanova by email albena.stoyanova@leinonen.bg or  +359 876 109092.

1. Maximum monthly threshold for social contributions increases

The maximum amount of insurable income is increased from 2400 BGN in 2014 to 2600 BGN in 2015. The minimum income increases as well to 360 BGN (equal to minimum wage). Distribution of social contributions between employer and employee remain the same.

Maternity period, for cash benefit calculations returns to 24 months as it used to be before 2014.

2. Concealment of social contributions criminalized

Concealment of social mandatory contributions in large size (over 3 000 BGN) is criminalized. Employers who do not pay contributions on real wages of its employees could face fines and imprisonment from 1 to 6 years.

3. Benefits for families

Families with up to three children will be able to enjoy tax benefits next year. With 200 BGN will be reduced taxable income of one parent for a child. For two children reduction will be 400 BGN, and for three - 600 BGN. For child with 50 % and over disability, the annual tax base will reduce with 2000 BGN.

4. German residents won’t pay tax for rental equipment in Bulgaria

From 01.01.2015 German residents, who realize income from rental equipment in Bulgaria, may be exempted from tax at the source under the Corporate Income Tax Act and Income Tax of individuals on the basis of Art . 7, para. 1 of the Agreement.

5. Withholding tax on interest and royalties incomes dropped

Withholding tax charging on income from interest and royalties, received from affiliated entities established in EU (subject to certain additional conditions) is 0 % from the beginning of this year. Earlier the tax was 5 %.

6. Tax on all bank accounts interest income

In 2015 final tax of 8 % is levied...read more.

7. Hidden profit distribution in the Tax Declaration

The procedure for announcing the amounts, representing hidden profit distribution in the annual tax declaration has changed. There is special line for... read more.

8. Electronic system connects all Tax Offices in EU countries

Automatic exchange of information between the tax administrations of EU Member States starts from 2015. Thus Local Tax offices will be able to collect...read more. 

9. Electronic service providers will pay VAT in the home country

The new system"mini-One-Stop-Shop" (MOSS) is already active in Bulgaria for suppliers of.... read more.

10. Personal Income Tax Declarations with Personal Identification Code

Starting from the beginning of 2015 Income Tax Declarations can be submitted online not only with electronic signature but with a personal identification code as well. The code.. read more

All news in Bulgarian language you could read here.

Leinonen Group as one stop service provider

Leinonen Group is all about company formation, accounting and payroll services. We provide you with advice in all these fields. Having been in business for over 20 years we have extensive experience in helping foreign companies to establish and operate their subsidiaries in our market areas.  Leinonen Group is an expanding international company with offices in 11 countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Hungary, Bulgaria, Russia and Ukraine. Our customers are mainly foreign owned companies in all these countries.

We are looking forward to co-operating with you!

Yours Sincerely,

Albena Stoyanova

Managing Director

Leinonen Bulgaria EOOD

Mob. +359 876 109092

Leinonen Bulgaria

22, Serdika Str., 1000 Sofia, Bulgaria

Tel. +359 2 983 2198