24.01.2025
HOW TO DECLARE AND WHICH INCOME TO THE NATIONAL REVENUE AGENCY
From January 10, the campaign for declaring and paying personal income tax began, the Active Consumers Association reminds. The tax is levied on all income received by the taxable person during the tax year, with the exception of income that is exempt from tax by law. The income specified in Art. 13 of the law is not taxable.
Basic rules and tips to keep in mind before declaring your income from 2024
Tax base
The tax base is the sum of the annual tax bases (Article 17 and Chapter 5 of the Personal Income Tax Act) from income from:
employment relationships (Article 25),
business activity as a sole trader (Article 28),
other business activity (Article 30),
rent (Article 32),
transfer of rights or property (Article 34) and
other sources (Article 36)
reduced by the provided reliefs (Chapter 4 of the Personal Income Tax Act).
Reliefs
A tax relief is a reduction in the tax due. You can use reliefs for reduced working capacity, voluntary insurance and insurance, insurance experience upon retirement, donations, young families, children, children with disabilities and non-cash payments.
See Tax relief from the annual tax
Tax amount
10% of the tax base for the income you acquired in the previous year.
15% for sole proprietors.
Advance payments
Income from: employment, other business activities and rent are taxed in advance.
Declaration
You declare taxes due online with an electronic signature or PIN, at an NRA office or by mail by submitting an annual tax return (under Art. 50 of the Personal Income Tax Act) and/or a declaration of taxes due (under Art. 55 of the Personal Income Tax Act).
Annual tax return
You submit an income declaration for the previous year (under Art. 50 of the Personal Income Tax Act) if you are:
- A local individual and:
you have received income subject to tax: rent, cash and non-cash prizes from games, competitions, contests, sale of property, shares and equity interests;
you want to use tax breaks;
you have paid patent tax;
you have non-taxable income from passenger taxi transport activities carried out by individuals - drivers, on behalf of a registered carrier;
you have received a loan/s from other citizens or companies in the amount of over 10,000 BGN in total or there are outstanding balances of over 40,000 BGN in total from loans given or received during the year or in the previous five years;
you own shares and equity interests in companies and real estate abroad;
you have acquired income from abroad, subject to final tax.
- Sole trader and you have income from business activity.
- Foreign individual and you have received income in Bulgaria, subject to tax.
You do not file an annual tax return:
if you receive only income from an employment contract and do not want to use tax breaks;
for non-taxable income;
except for income from taxi transportation (Art. 13, para. 1, item 29 of the Personal Income Tax Act);
for income subject to final tax,
except for income from abroad from dividends and liquidation shares, from the exchange of shares and units, from insurance and Life insurance, from interest on bank accounts and from prizes from games, competitions and contests (Art. 50, para. 1, item 3 of the Personal Income Tax Act);
if you are a foreign person and have income subject to final tax, except in the event of recalculation of the tax (Art. 37a of the Personal Income Tax Act).
Terms
annual tax return (under Art. 50 of the Personal Income Tax Act): by April 30 of the following calendar year;
tax return (under Art. 55 of the Personal Income Tax Act): for advance and final tax, April 30, July 31, October 31 and only for final tax, January 31 of the following year.
Payment
You benefit from a 5% discount, but not more than BGN 500, if you simultaneously meet the following conditions:
submit a return electronically
submit the return by March 31;
at the time of filing the return, you have no public liabilities subject to enforcement;
pay the additional tax by March 31 of the following year.
Refund of overpaid tax
If you have overpaid tax, usually as a result of using a tax relief, the overpaid amount will be refunded to you within 30 days to the bank account you indicated on page 2 of the main part of the return (form 2001).
Penalties
If you fail to file a tax return within the established deadlines, the penalty is a fine of up to BGN 500, unless you are subject to a more severe penalty. In the event of a repeated violation, the fine is up to BGN 1,000. If you submit false information that results in a lower tax for you or in non-payment of tax, the penalty is a fine of up to BGN 1,000, unless you are subject to a more severe penalty. In the event of a repeated violation, the fine is up to BGN 2,000.
For your convenience
In the "Forms" section of the NRA website, the following are published:
Additional information on declaring income for the past year can be obtained by calling the NRA Information Center at 02 9859 6801 and 0700 18 700, at a price according to the tariffs of the respective operator, as well as on the website of the revenue agency: https://nra.bg.
Requirement for the sale of goods
The NRA announces that on January 31, 2025, the deadline expires, in which digital platform operators should submit information about sellers who were active on the platforms during the reporting year 2024. The following four categories of activities are carried out with the help of the platforms:
sale of goods;
rental of real estate, including residential and commercial properties, apartments, hotel rooms, villas, parking spaces, etc.;
personal services (e.g. work for a certain time or to perform a certain task);
rental of any type of vehicle.
The submission of information is carried out through the service "Automatic exchange of information by platform operators - DPI/DAC7", which is available on the e-services portal of the revenue agency with a qualified electronic signature /QES/. For the reporting year 2024 Platform operators must carry out identification and due diligence of all sellers registered and operating on the platform – existing sellers (registered on the platform before 01.01.2023) and new sellers (registered on the platform after the entry into force of the rules). Platform operators that have not yet registered with the Executive Director of the National Revenue Agency for operating as a platform operator should do so as soon as possible using a Notification for operating as a platform operator.
