Tax law

Данъчно право

As word goes – there are two certain things in this life, one of them being that we must pay taxes. Tax Law performs a special function, namely payment of various types of charges, tax reliefs accordingly, as well as a means of communication with tax authorities on various occasions.

Tax obligated persons feature different status, but we shall pay special attention to natural persons and legal entities. Natural persons should pay taxes under different hypotheses, namely: in case of concluded freelance contracts, income from rental relationships, real estate property taxes and more. The relevant regulatory action is the Income Taxes on Natural Persons Act, as well as the Value Added Tax Act (VATA), in case of available legal prerequisites. With legal entities and mainly with business companies, the influence of the tax branch is more intensive. Anyhow, with most legal entities, workers and employees are available, for whom respective charges are due. Legal entities registered under the VATA are a very common phenomenon, whereas businessmen with turnover falling short of the registration minimum are quite rare, but nevertheless cannot be excluded. The relevant law concerning the profit of legal entities is the Corporate Income Tax Act (CITA). The manner in which the tax procedures develop is regulated by the Tax and Social Security Procedure Code (TSSPC), which regulates the manners of establishment not only of tax liabilities, but of social security ones, too.

The tax and social security control is accomplished by revisions and inspections by the competent tax employees with the National Revenue Agency. During their inspections, the tax authorities are obliged by law to observe certain terms for their implementation, such as, for example: the Revision Report should be drawn within 14 days from expiration of the revision term, whereas the Revision Report and the subsequent Inspection Certificate should comply with some specific criteria regarding their validity.

It should be emphasized that the tax framework in Bulgaria is exclusively business-oriented and attractive with its low tax rates and the various on-line services, which not only reduced the queues at the desks, but also implemented tax mechanisms characteristic of the 21st century which, undoubtedly, exist in the developed countries throughout the European Union. In the field of Tax Law, “Ivanchov & Partners” offer the following services, among others:

  • Advice regarding VAT;
  • Legal support under the Corporate Income Tax Act;
  • Cooperation for procedures under the Tax and Social Security Procedure Code;
  • Advice in relation with tax relief regimes;
  • Overall communication with the tax authorities on issues posed by clients and legal assistance with respect to tax revisions;
  • Complex procedural representation during court procedures before all instances in relation with revision procedures;