16.06.2021
THE DEADLINE FOR DECLARING TAXES BY SOLE PROPRIETORSHIPS AND COMPANIES EXPIRES
Over 60% of the companies paying corporate tax have declared their revenues to the NRA 14 days before the deadline. Sole proprietors, including patent payers and farmers who have chosen to be taxed as sole proprietors who have already filed income tax returns, exceed 63,000.
The NRA reminds that the deadline for declaring and paying the tax and the final social and health insurance contributions for the persons carrying out activity as a sole trader, as well as the farmers who have chosen this order of taxation, is June 30.
By the end of June, together with their annual tax return, they must submit a declaration form № 6 with the total amount of social security contributions due for the previous year.
June 30 is also the term in which the companies declare and pay corporate tax under Art. 92 and Art. 93 of the Corporate Income Tax Act, tax on expenses, tax on revenues of budgetary enterprises, tax on revenues from ancillary and ancillary activities within the meaning of the Gambling Act, as well as tax on the operation of ships.
The submission of tax and insurance declarations and documents, as well as the payment to the budget, are made online, through the e-services portal: https://inetdec.nra.bg/, with a personal identification code (PIC) of the NRA for individuals or qualified electronic signature (QES).
The Information Center of the National Revenue Agency answers questions from clients by phone: 0700 18 700 from 9.00 am to 5.30 pm on weekdays. The call is priced according to the tariffs of the respective operator.
16.06.2021
WHAT DOES HARASSMENT IN THE WORKPLACE MEAN?
The Labor Code does not contain definitions of "harassment" and "violence" in the workplace, including on the basis of gender, as well as measures aimed at preventing them.
This may change if Bulgaria ratifies International Labor Organization (ILO) Convention 190 on the Elimination of Violence and Harassment in the Field of Labor. Experts will discuss at a forum organized by CITUB and the Friedrich Ebert Foundation the need for Bulgaria to ratify the ILO Convention, BTA reported.
The Convention was adopted at the jubilee 108th session of the ILO in June 2019. For the first time, it formulates and proclaims a new labor law - the right of everyone to work without violence and harassment. The Convention is the first international instrument to protect the worker from such acts.
According to experts, unfortunately, violence in the workplace is still part of the reality of many professions, especially in the field of public services. In a large percentage of cases, violence or harassment is addressed to women. According to the ILO, 35 percent of women worldwide are victims of direct violence in the workplace. A total of 45% of women in the European Union claim to have been victims of one or another case of violence. Between 40 and 45 percent report being sexually harassed in the workplace.
According to a study by the European Trade Union Confederation published in March this year, employers, legislators and law enforcement agencies are not doing enough to tackle violence and harassment in the workplace. Only 23 percent of the women surveyed believe that employers have done enough to tackle violence and harassment in the workplace, including online violence. Only 16 percent say employers have updated their policies to deal with online harassment related to telework during the lockdown.
The same percentage say the laws in their country are strong enough to tackle violence and harassment in the workplace, including online, and 17 per cent believe they are being implemented properly. Most of the respondents indicate that they are very concerned about the problem in both the forms in which it is applied - online and offline.
ILO Convention 190 provides a clear definition of "violence and harassment" as "single or repetitive conduct, practice or threat, aimed at, leading to or likely to cause physical, psychological, sexual or economic harm". The Convention protects employees, regardless of their status, by including cases where the perpetrators are third parties - customers or service providers, and covers the impact of domestic violence on the work climate and process.
The extended interpretation of the definition of "worker" covers all activities that can be defined as work - with or without the traditional contractual relationship - and thus corresponds to the modern reality of a mobile and diverse world of work. The term covers workers also during their leave, trainees, jobseekers, dismissed and suspended, as well as those who are charged with the function of employers or perform the duties of such.
The Convention introduces definitions of "violence and harassment in the world of work" and "gender-based violence and harassment". Art. 127 of the Labor Code does not contain obligations for the employer or other persons to refrain from taking actions that constitute "harassment" and "violence" by virtue of the definition of Art. 1 of ILO Convention 190. There are no similar texts in the Civil Servant Act, as well as in other laws that generally or partially regulate the constitutional right to work.
In the Law on Protection against Discrimination there is a definition only for "harassment", but it differs from the definition in Art. 1 of Convention 190, given that in this law harassment (including that based on gender) is regulated from the point of view of creating inequality, inequality. While in the convention it is related to another special purpose - "causing physical, psychological, sexual or economic harm".
The Convention justifies a number of significant consequences related to harassment and violence. They have a negative impact on the quality of public and private services and can prevent people, especially women, from entering the labor market, staying in the workforce and developing professionally. Harassment and violence in the workplace adversely affect people's psychological state, physical and sexual health, their sense of dignity, their family environment and their social environment.
14.06.2021
THE NSSI ELECTRONIC SERVICE FOR CALCULATING THE ESTIMATED AMOUNT OF THE PENSION HAS BEEN UPDATED
An updated version of the electronic service "Calculation of the forecast pension" is active on the Internet page of the National Insurance. The updated methodology for calculating the individual coefficient for pensions granted with a starting date after 31.12.2018 has also been published.
The new versions of the e-service and the methodology reflect the changes in the Social Security Code, adopted at the end of 20202, and in the Ordinance on pensions and length of service, promulgated in May this year, which defines a new way to calculate the reduction of individual coefficient of the persons who were born after 31.12.1959 and are insured in a universal pension fund.
The changes will take effect on September 1, 2021, and future retirees can now check the approximate effect of their application on the basis of the forecast.
The individual coefficient is one of the elements on the basis of which the dimensions of the pensions related to labor activity are determined. Its reduction reflects the fact that persons born after 1959 are insured for a state pension with a lower amount of the insurance contribution for the "old age" risk, as part of it goes to a universal pension fund in order to receive a second supplementary pension. It is strictly individual and the correction depends directly on the insurance history of the person and his specific periods of insurance.
The new method for calculating the reduction of the individual coefficient, which will come into force from the beginning of September 2021, takes into account:
1) the transfer from the state budget in the amount of 12 per cent on the sum of the insurance incomes of all insured persons for the period from 2009 to 2015, incl. - when determining the amount of the contribution for the "Pension" fund of the state social insurance for the third category of labor, for persons, born on January 1, 1960;
2) the number of months during which the person is insured in a universal pension fund, compared to the total length of his insurance period, defined as the number of months with insurance in the state social insurance, as the months with insurance in a universal pension fund and in the state social insurance are calendar months, for which insurance contributions have been paid or are due.
The changes are aimed at achieving a small reduction in the size of the individual coefficient and, accordingly, a higher size of the pension.
14.06.2021
ENTREPRENEURSHIP: WHAT ARE THE QUALITIES OF THE ENTREPRENEURS OF THE FUTURE?
Entrepreneurs of the future should not have a big ego, they should be able to accept criticism constructively, make decisions quickly and be able to change these decisions even faster and adapt them so that they are more effective. These are some of the conclusions that brought together the top experts who participated in the discussion of the conference "Entrepreneurs of the Future". They were adamant that the idea, while important, was not the only fundamental part of creating and developing a successful start-up business.
"Investors are looking at the idea, but entrepreneurs must constantly change it until it is right," explained Angel Ivanov, co-founder of the popular gourmet burgers chain Skapto. According to the executive director of Bulpros Consulting Ivaylo Slavov, entrepreneurs should seek and accept constant feedback and criticism from their trusted people. "It is very important to have a mentor and a person whose criticism you can trust to get better," he said.
"In order to work with people, you have to put your ego in your back pocket and have a winning solution," commented Krum Alexiev, director of the Corporate Clients Department at UniCredit Bulbank. The expert from UniCredit Bulbank was also the first to give valuable advice on financing a start-up business.
"When the business starts and is in the start-up phase, in the idea phase and the product has to be validated, then the usual practice is for its owners to maintain it and provide it with capital. They invest in the idea and sustain it until it begins to generate cash flow that is large enough to service debt. This is the moment when the product has already been validated, there are end customers and the owners can turn to debt instruments to obtain financing for further business development, "he explained.
According to him, currently the environment in Bulgaria is extremely favorable for access to finance, adding that international financial institutions such as the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) provide great support to banking institutions for a resource that is then provided with warranty instruments without significant collateral.
However, Dr. Petar Duchev, chief physician and managing partner at the Petar Duchev Dental Clinic, was of a different opinion. According to him, securing financing continues to be a challenge for entrepreneurs, unless their business is related to the IT field. He himself gave the example that it took him 3 years to find funding for the expansion of the first clinic in the chain.
Another interesting point of view was given by the co-founder of Skapto. He defined entrepreneurship as a game of motivation, and according to him, financing with own funds has a significant role on motivation. "We have always relied on our own resources and I think that our motivation to develop is greater," he said.
The executive director of Bulpros Consulting Ivaylo Slavov revealed that in the beginning their company was financed with its own funds. "We have created an ecosystem, we have changed the environment of funding. 12 years ago you were only with relatives and friends, now there are more opportunities if you have ideas. The most critical are the venture capital funds - from angel investors, venture capital and bank capital, "said Slavov.
The participants in the discussion also commented on an interesting trend about the impact that COVID-19 has on the business sector. Krum Alexiev explained that the number of entrepreneurs who accept the COVID-19 crisis as an opportunity has increased. He added that currently many young entrepreneurs decide to invest in starting their business with the argument: "when, if not now".
Ivaylo Slavov also shared his opinion. According to him, after the Covid crisis there is a shortage of original ideas. And on the topic of original ideas, everyone was adamant: young entrepreneurs must constantly adapt their project idea to meet the dynamic circumstances, markets and needs of customers. The four were also unanimous on what the entrepreneur of the future should be like: socially responsible, creative, modest and flexible. To be constantly educated and upgraded, to use the sea of information to their advantage and to realize that failure is not a disgrace - these were some of the valuable advice that the participants gave from the stage of "Entrepreneurs of the Future".
The second part of the conference was just as interesting - including six fireside interviews between young entrepreneurs and proven experts from the entrepreneurial ecosystem in our country. The mentors who came on stage to share their invaluable experience were Genoveva Hristova, entrepreneur and managing partner in LIGNA GROUP, Viktor Manev, co-founder and partner in Impetus Capital, Dimitar Dimitrov - CEO of Alterco, manager of Cocoon Mediacal Snezhana and Daniel Laurer, managing partner at BrightCap Ventures.
In front of the audience in the hall of "Entrepreneurs of the Future", as well as in front of the viewers of the live broadcast on the channels of Investor Media PRO and Investor.bg, the six mentors met with the teams of six promising startups and talked to them about attracting investments, new markets, proper project marketing, creating a successful business strategy and many other topics.
You can see what they are in the recording of "Entrepreneurs of the Future" on the digital event platform Investor Media PRO, where the conference was broadcast live on June 10.
11.06.2021
WORKING CAPITAL SUPPORT FOR SMES CONTINUES
From June 14, 2021 the third phase of the working capital support program for the businesses affected by the anti-epidemic measures has started. New BGN 55 million are provided for the provision of working capital through grants under the Operational Program "Innovation and Competitiveness" 2014-2020. So far, nearly BGN 120 million have been paid under the first two phases of the program, added the NRA.
The third phase of the program is related to the extension of the working capital support of the companies with suspended activities or sites for the periods from 22 to 31 March 2021 or until different dates in April 2021, according to the orders of the Minister of Health. The application forms for the third phase are submitted again electronically through the Portal for e-services of the NRA and e-service "Submission of documents for support through working capital for SMEs affected by the temporary anti-epidemic measures". The application deadline is June 22, 2021.
The NRA advises the candidates who want the verification for eligibility of the indicated codes of economic activity, according to NACE.BG-2008, to be performed according to the data from the annual reports on the activity of enterprises for 2020, to submit their reports to the NSI before applying for support. through working capital for SMEs.
Additional explanations about the applicable application periods, deadlines and forms for participation in phase three will be available in the specialized section "Support through working capital" on the website of the NRA from Monday next week. Clients can also receive information and assistance by e-mail infocenter@nra.bg or on the information phone of the National Revenue Agency 0700 18 700.
11.06.2021
HOW TO ORGANIZE YOUR FINANCES DURING A CRISIS
Taking care of personal finances is fundamental if we want to lead a happy and balanced life. This means that this care must start from the moment we start handling personal funds, earning money and distributing it according to our desires and needs. In this way we learn to manage our finances in unpredictable circumstances.
Let's look at the possible options for action in cases where we find ourselves in a situation of economic crisis - a personal financial crisis or a crisis in the environment around us. We will go through the steps we can follow to successfully organize our budget.
Surely most of the following things have happened to most of us:
- We try to save on our monthly income, but we fail because something always "emerges" and we postpone for the next month.
- We live from salary to salary.
- We feel a "shortage" of money, but when we increase our monthly income, for example through better paid work, we continue to have the same feeling and our financial situation does not change much.
In order to overcome these and other similar obstacles to the "recovery" of our finances, we must first be aware of what money means to us.
It is important to try to analyze how we perceive money and what role it plays in our lives. This is extremely important, because if we do not know our own attitude, there is no way to change and improve it. Here are some guiding questions we can get to know ourselves:
- What was the attitude to money in my family ?;
- What is my attitude to money today?
Before answering the questions, we need to think very carefully about whether we perceive money as a source of anxiety or an end in itself, and how often we think about it. Some people only think they have a financial problem when they are at a dead end. By answering these questions honestly, we are taking the first step toward enriching our financial culture and learning about our attitudes toward money.
Once we understand what money is for us, we can proceed to build a personal budget. It is a concept that, in addition to tracking income and expenses, includes the already mentioned attitude towards finance and gives us a broader perspective.
For starters, we can start with a simple tracking of income and expenses. The main goal, of course, is not to spend more than we earn. Various types of applications are now available that facilitate the process of tracking spending. Using a very simple table can also bring good results. The important thing is to be consistent in keeping records and to build habits that work for us.
Another tool that helps in the organization of our finances is setting a financial goal. It can be short-term - for the next few months or a year, or it can be long-term - for the next five, ten or more years. It is important that the goal is as specific as possible, achievable for us and that it is bound by a deadline.
Examples of financial goals are debt repayment (consumer loan, mortgage, etc.), saving for the purchase of an object (car, telephone, etc.), saving for education or retirement, building the habit of saving, creating an investment portfolio, etc.
Setting a financial goal helps engagement and motivation. In addition, it further encourages us to consider the way we spend. In times of crisis, it is extremely important to manage our funds without succumbing to impulsive decisions such as unnecessary quick purchases. Although they bring short-term satisfaction, they have a negative long-term impact on our financial routine.
The next step, which is essential for the successful management of our finances, is to achieve a good level of financial literacy. This includes basic knowledge of macroeconomics, knowledge of processes such as inflation, basic market functions and trends, investment opportunities. The Finance Academy accepts financial education as a mission through which to achieve sustainable improvement of the quality of life in our country. The goal is to achieve better financial solutions and build appropriate habits. Thus, the effect of a crisis on our daily lives could be minimized without turning our world upside down and making us make big and uncomfortable changes.
In the Investment and Personal Finance Program at Finance Academy you will find successful strategies for managing your personal finances, how to successfully save and invest.
11.06.2021
HOW MUCH MONEY DO YOU NEED TO BE IN THE CLUB OF THE RICHEST?
How much money does it take for a person to fall into the top 1% of the world's wealth? This question is asked every year, and the definition of the exact amount remains an unsolved problem. This is because each country has its own threshold for being among the wealthiest. For example, to be a person in the top 1% of wealth in the United States requires 4.4 million dollars, while in Romania will be enough only 300,000 dollars, according to a report by consulting company Knight Frank.
It takes at least $ 30 million to run a super-rich man, an amount that is too high even for the people of Monaco, even though the kingdom has the most rich people per capita in the world. It turns out that $ 7.9 million is enough to be among the top 1% in Monaco, according to the report. Monaco is the country with the highest threshold to enter the elite club. In second place is Switzerland, where at least $ 5.1 million is needed. The United States ranks only third with $ 4.4 million, although it is home to the most super-rich people in the world.
The top ten is complemented by Singapore ($ 2.9 million), New Zealand, Hong Kong, Australia ($ 2.8 million each), Ireland ($ 2.6 million), France ($ 2.1 million) and Germany ($ 2 million).
In the UK, at least $ 1.8 million will be needed to join the club of the rich, while in Japan it will be at least $ 1.5 million.
A fortune of $ 1.4 million is needed to enter the top 1% in Spain and Italy.
In China, people with a personal fortune of at least $ 850,000 account for part of the top 1%. In Russia, this threshold drops to $ 400,000.
All Romanians with a net worth of more than $ 300,000 are part of the country's top 1% of wealth, the report said. This is the 22nd highest threshold of all jurisdictions surveyed by the consulting firm.
There are no data for Bulgaria, but if we take as a starting point the statistics for Romania and the data for GDP per capita, we can assume that the amount to fall into the top 1% of wealth in our country is in the range of 200,000 - 300,000 dollars. However, this is only a guess, as the survey does not provide information about Bulgaria, and the statistics are mainly influenced by the number of millionaires in each country.
Among the countries with the lowest threshold for joining the elite club are Brazil ($ 280,000), South Africa ($ 180,000), Vietnam ($ 160,000), Nigeria ($ 70,000), India ($ 60,000), the Philippines ($ 60,000), Indonesia ($ 60,000) and Kenya ($ 20,000).
11.06.2021
NEW BGN 55 MILLION ARE PROVIDED FOR THE COMPANIES AFFECTED BY THE ANTI-EPIDEMIC MEASURES
At the beginning of next week, the third phase of the working capital support program for the businesses affected by the anti-epidemic measures will start. New BGN 55 million are provided for the provision of working capital through grants under the Operational Program "Innovation and Competitiveness" 2014-2020. So far, nearly BGN 120 million have been paid under the first two phases of the program, added the NRA.
The third phase of the program is related to the extension of the working capital support to the companies with suspended activities or sites for the periods from 22 to 31 March 2021 or until different dates in April 2021, according to the orders of the Minister of Health. The application forms for the third phase will be submitted again electronically through the Portal for e-services of the NRA and e-service "Submission of documents for support through working capital for SMEs affected by the temporary anti-epidemic measures". The application deadline is June 22, 2021.
The NRA advises the candidates who want the verification for eligibility of the indicated codes of economic activity, according to NACE.BG-2008, to be performed according to the data from the annual reports on the activity of enterprises for 2020, to submit their reports to the NSI working capital for SMEs.
Additional explanations for the applicable application periods, deadlines and forms for participation in phase three will be available in the specialized section "Support through working capital" on the NRA website from Monday next week. Clients can also receive information and assistance by e-mail infocenter@nra.bg or on the information phone of the National Revenue Agency 0700 18 700.
10.06.2021
ROMANIA FORBIDS OFFICIALS FROM TAKING BOTH A PENSION AND A SALARY
The Romanian government has approved a bill banning the combination of a pension with a salary in the public sector, local media reported.
"At the same time, the project envisions raising the retirement age to 70 at will," said Romanian Prime Minister Florin Katsu. He specified that the bill will enter the parliament with an urgent procedure.
The normative act provides for the possibility to choose between a pension or a salary for the employees in the public sector who fulfill the conditions for retirement. If they are already retired but want to continue working in the state system, then their pension will be suspended. Also, employees in the public sector are not obliged to retire when they reach the standard retirement age, but can continue to work until the age of 70.
"They can retire at any time in the period up to the age of 70. In the public sector, the pension cannot be combined with a salary. Employees have the obligation to choose between the two within 30 days," explained Labor Minister Raluka Turkan. Romania has no money to raise pensions.
Gigi24 TV notes that there are a number of exceptions to the rule that prohibits the accumulation of pensions and salaries. These are local elected officials, parliamentarians, members of the Constitutional Court and the National Audit Office, members of the Romanian Academy and others.
09.06.2021
THE EP APPROVED THE RENEWED EUROPEAN SOCIAL FUND
The European Parliament has approved the rules for the functioning of the European Social Fund + (ESF +) until 2027. The new program with a budget of 88 billion euros focuses on helping children and young people to fight poverty and unemployment in the EU.
The fund will support access to free education, quality food and a home for children. It will also support the organization of practical traineeships and trainings for unemployed young people.
Social issues are a major concern for many. The European Social Fund + will promote the social inclusion of people who have lost their jobs and incomes, and will provide food and basic assistance to those most in need.
The European Social Fund is the EU's oldest financial instrument for improving people's job opportunities and raising their standard of living.
The EU distributes funding from the fund to Member States and municipalities. The funds go to improving employment, eliminating weaknesses in education, measures against poverty and social exclusion.
Beneficiaries are usually individual workers; young people; job seekers; people in economic difficulties.
Companies and organizations can also benefit from funding.
The renewed fund brings together a number of existing programs:
ESF + will invest in three main areas:
The fund will also support the acquisition of skills needed for new jobs related to the transition to a green economy and digitalisation.
Each Member State will need to allocate sufficient funding to tackle child poverty. Countries with high levels of child poverty will have to spend at least 5% of ESF + resources to support children in various areas, from access to free education to decent food and housing.
Countries with above-average youth unemployment must invest at least 12.5% of their resources to help young people find work.
