17.12.2021

AN IMPORTANT DEADLINE FOR INCOME TAXATION IS COMING TO AN END

Individuals registered as farmers have the right to choose the order of taxation of income from their activities in 2022, reminded by the National Revenue Agency (NRA).

The right to choose is exercised by submitting a declaration under Art. 29a, para. 4 of the Personal Income Tax Act by December 31 of the previous year. The choice is valid for 5 consecutive tax years and does not need to be confirmed annually by submitting a new return. Upon taxation under the procedure provided for sole proprietors, natural persons registered as farmers may not exercise the right to assign the tax on the annual tax base, which is provided for in Art. 48, para. 6 of the Personal Income Tax Act.

Newly registered in 2021 farmers can choose for the same year to be taxed on the annual tax base under the procedure provided for sole proprietors (Article 28 of the Income Tax Act), and the choice is declared in the annual tax return under Art. 50 of the Personal Income Tax Act for 2021.

In case they wish to continue with this order of taxation in 2022 and the next four years, it is necessary to submit a declaration under Art. 29a, para. 4 of the Personal Income Tax Act by 31 December 2021.

The sample declaration for choosing the order of taxation of farmers' income can be found on the website of the Revenue Agency www.nra.bg, section "Forms".

The declaration is submitted personally by the farmer or his authorized representative in the office of the NRA at the permanent address of the individual. The declaration can be submitted electronically through the electronic services portal of the Revenue Agency or by mail.

More information on choosing the procedure for taxation of income, filling out the declaration and paying the taxes due, farmers can get on the phone of the Information Center of the NRA: 0700 18 700 (at a price according to the tariff of the operator).