08 October 2008Don't Keep Big Money in Banks

The decision of the EU to increase the ceiling of guaranteed deposits from 20,000 to 50,000 euro refers to Bulgaria, too. So, Bulgaria will be obliged to guarantee higher bank deposits. Presently, the Bulgarian state guarantees bank deposits to 40,000 levs (1euro=1.95levs). The gradual increase of the threshold with a grace period at the level of deposits security was valid for the pre-accession period. A certain grace period will be defined.

10 September 2008Tax authorities want deals worth 18M leva declared void

The Sofia branch of National Revenue Agency (NRA) has asked courts to declare property deals worth 18.24 million leva void, Bulgarian news agency BTA reported on September 9 2008. The NRA has concluded that some tax payers have found ways to avoid declaring taxes by selling most of their assets. Such deals, the NRA concluded have happened between individuals who had close relations and the value of the assets sold overvalued the price paid for them. There were cases when such deals happened after the NRA has launched tax checks into the activity of certain individuals who have immediately sold their assets to relatives and thus avoided the payment of taxes. Sometimes, when a company is being checked, its assets are being bought by the head of the company as an individual at a price that is considerably lower than what it would fetch on the market. So far, the NRA has recorded eight cases for such deals worth a total of 18.24 million leva.
As previously reported, the NRA has started checking the sources of income of wealthy Bulgarians three years ago. Tax authorities will check people who have bought real estate worth at least 100 000 euro and who have bought motor vehicles worth at least 80 000 euro. Checks will be based on gathering public information about properties owned by these people by using sources such as municipalities or the Registry Agency, where information about the acquisition of real estate is filed. Then tax inspectors will invite the people on the list for a conversation at NRA and will ask where the money for the acquisition has come from. If they present conclusive information, such as a bank loan for example, the check will be over. If they fail to present proof, then a tax audit into their incomes will be launched.

10 September 2008The insurance income for the country for July is 492,42 levs

The average monthly insurance income for the country in the period from August 1 2007 to July 31 2008 is 455,83 levs. The determined average monthly insurance income for the country in the given period is used for the calculation of the amounts of the newly issued pensions in August 2008, according to the Codex of social insurance, is pointed out in an announcement of the National insurance institute.

10 September 2008Starting a Company in Bulgaria Takes 49 Days

Registering a company in Bulgaria takes averagely 49 days, and paying your taxes takes 616 hours a year, according to Doing Business 2009, a regular international report of the World Bank. Bulgaria has moved 1 position down the best business environment chart to 45th place, and is 6th in terms of easiness of bank lending procedure. Bulgaria is also among the best defenders of investor interests, the report reads. Registering of property in Bulgaria takes about 19 days. Starting your own company requires 49 days and an initial capital matching 47.8 percent of the figure of the national average annual income per capita. Tax incidence in this country is 34.9 percent.

08 August 2008Bulgarians Abroad Entitled to Refund for Health Insurance

Bulgarian citizens who resided outside the country for over 183 days from July 1, 1999 until December 31, 2007 and have not used medical services paid by the National Health Insurance Fund are no longer mandated to make health insurance payments, as announced by the National Revenue Agency. Those individuals are also entitled to a refund for the same period if they have paid for their health insurance with the National Health Insurance Fund. There is a special declaration that has to be filed with the Revenue Agency and sent via email with an electronic signature or via regular mail. The declaration can also be filed by a person holding a power of attorney without notarization. In addition to the declaration, the Revenue Agency recommends submission of a copy of the individual's international passport showing dates of leaving and entering Bulgaria or a declaration from the respective Regional Police Directorate.

10 July 2008Salaries in Sofia by 30% Higher

The salaries in Sofia for June are 30% higher than the remunerations in Bulgaria's second largest city of Plovdiv, it transpired from a report of the Industry Watch. Following Sofia, the private firms in Varna and Bourgas offer the best-paid jobs. The lowest salaries are registered in the towns of Vratsa, Vidin and Montana. But the lower cost of living in these towns makes up for the low wages.

17 June 2008Bulgaria's GDP registers a 7% growth

Bulgaria's economy made a flying start in 2008. The GDP hit a 7-% growth in the first three months of 2008, the National Statistical Institute (NSI) reported. This is an excellent precondition for high economic growth throughout the whole 2008. A very high growth of 7.3% was also registered in the second trimester of 2007 but the poor harvest in 2007 and the slowdown of Bulgaria's economy in the summer reduced the annual economic growth to 6.2%. This year, Bulgaria expects a very good crop. The GDP for the first trimester of 2008 amounts to 13,483 billion levs (1euro=1.95levs), which is 1,760 levs or USD$ 1347,9 or 900 euro per capita. Regardless of the high economic jump in this index, Bulgaria and Romania still occupy the last 2 places in the EU.

06 June 2008US Investors in Bulgaria to Pay Lower Taxes

The US companies and private persons who make investments in Bulgaria will pay lower taxes. This is provided in the agreement for dual taxation avoiding between Bulgaria and the USA. US President George W. Bush has sent a letter to the Senate, in which he asks the senators to ratify the agreement, so that it can come into force, as the Bulgarian MPs already passed the document. Te dual taxation avoiding agreement provides a five-percent tax on the interests and the royalties paid by Bulgarian firms to US companies. The same tax will be levied on the dividend, paid by Bulgarian companies to US shareholders. The US pension funds, which have decided to invest in Bulgaria, will also take advantage of taxation preferences - the interests and dividends paid by Bulgarian firms to US pension funds will be tax exempt. The agreement also regulates the exchange of information between the taxation and investigating authorities in Bulgaria and USA.

06 June 2008Bulgaria PM: Impossible to Lower VAT This Year

It is going to be impossible to lower the Value Added Tax (VAT) in 2007, according to Bulgarian Prime Minister Sergey Stanishev, who spoke at the meeting for the establishment of a National Committee for the Celebration of the 100 Anniversary of Bulgaria's Independence. Just days ago rightist parties proposed that the VAT is lowered by 2% in 2008. Stanishev explained that such decision cannot be made just by Bulgaria and each economy measure had to be carefully examined in relation to its future influence on the state budget's revenue. The budget's revenue comes mainly from VAT and excises. In addition, Stanishev pointed out that it was too early to say if VAT would be lowered in 2009.

06 June 2008Bulgaria Ranks Among Top 10 Reformers

Bulgaria was officially accepted in the "Reformers' Club of the World Bank" at an official ceremony held in New York. The club's membership includes countries that have made serious changes in the course of the last few years in order to facilitate business. According to a research conducted by the World Bank focused on ways to execute business in over 200 countries, Bulgaria ranks among the 10 biggest reformers mainly due to tax reductions.

22 May 2008More Corporate Tax Declarations Filed in Bulgaria

The National Revenue Agency reported that until the end of March there are 34% more corporate tax declarations filed in Bulgaria compared to last year. According to the Agency, the increased number of declarations shows that companies in Bulgaria are coming out of the "grey" sector. Another reason is said to be the improvement of business climate, as well as the abolition of patent tax for corporate bodies. In 2008 the standard corporate tax in Bulgaria is 10% and a flat income tax rate of 10% was also introduced.

05 December 2006MINIMAL SALARY IN BULGARIA TO REACH 180 LEVA IN 2007

The national council for tripartite co-operation approved a proposal for increase of the minimal salary to 180 leva from January 1 2007. Currently the minimal salary in Bulgaria is 160 leva. The proposal is for an increase of 12.5 per cent, a Council of Ministers press release said. The minimal hour wage would be increased from 0.95 to 1.07 leva per hour. On November 13 2006 the leaders of the Bulgarian Socialist Party (BSP), National Movement Simeon II (NMSII) and Movement for Rights and Freedoms (MRF), the parties in Bulgaria's ruling coalition, already took the political decision for the minimal salary increase. The initial draft budget for 2007 said that the minimal salary will rise to 170 leva.

05 December 2006Bulgaria Ups Property Tax Valuations by 20%

Property tax valuations will be increased 20% as of the beginning of 2007 under amendments to the local taxes and fees act. Bulgaria's parliament adopted the amendments on Wednesday, citing an increase in market prices over the last year. The latest update of property tax valuation levels in Bulgaria was made at the end of 2005, when they were raised by up to 50%. The new increase will not only boost, but even exceed the "Building" tax, which is estimated on the base of valuation taxes.

23 November 2006COMMERCIAL REGISTER IS DELAYED FOR JULY 1ST 2007

In State Gazette, issue 80 / 3 October 2006 a Law Amendment of the Law on Commercial Register has been promulgated. According to it the deadline for entering into force of the commercial register has been delayed from 1 October 2006 to 1 July 2007.