Filing a tax return in Bulgaria for individuals

Nowadays, when digitalization is transforming every sphere of our lives, online tax filing services are becoming increasingly important and preferred by individuals and legal entities. Elan Consulting, a leading Bulgarian accounting firm, understands this need and offers its clients an innovative online tax return filing service, pursuant to Art. 50 of the Personal Income Taxes Act in Bulgaria. This service was developed in order to facilitate the declaration process, reduce the time for processing documents and increase efficiency and accuracy in the implementation of tax obligations.

The creation of this online platform by Elan Consulting is a response to the growing need for fast, secure and easily accessible tax filing solutions. The service is designed to be intuitive and user-friendly, while ensuring compliance with all current legal requirements. It offers the possibility of filing declarations from anywhere in the world, as long as you have an Internet connection, thus contributing to the optimization of time and resources of Elan Consulting clients.

What does the service of filing an annual tax return for an individual include?

The service for filing an annual tax return for an individual, offered by Elan Consulting, is designed to make it as easy as possible for taxpayers in fulfilling their obligations to the state. It includes a number of key aspects that ensure not only compliance with legal requirements, but also optimization of the declaration process, as well as maximum use of the tax benefits provided for in the legislation. The service covers the following key elements:

1. Online filing of tax returns: By declaring our service, taxpayers can easily and conveniently file their returns from anywhere in the world, as long as they have access to the Internet. This shortens processing time and minimizes the need for a physical presence in the offices of the National Revenue Agency (NRA) or in the office of Elan Consulting!
2. Declaration of income and claim of tax deductions: The service allows citizens to declare various types of income received during the tax year, as well as to claim the use of various tax benefits provided by law to reduce the annual tax base.
3. Use of tax deductions subject to the following conditions: Taxpayers have the opportunity to reduce their tax base with the help of various benefits provided for in the ZDDFL, including for children and children with disabilities, for repairs and improvements of housing, for interest on mortgage loans for young families, for reduced working capacity, for additional voluntary insurance and for donations.
4. Fast and secure processing of declarations:Our experts perform fast and secure filing of tax returns, while ensuring the protection of personal data and information provided by taxpayers

Who is the service of filing an annual tax return for an individual in Bulgaria intended for?

The service for filing an annual tax return for individuals in Bulgaria, offered by Elan Consulting, has been developed with a wide range of individuals in mind who need a convenient, fast and reliable way to fulfill their tax obligations. It is an ideal solution for different categories of taxpayers who are looking for maximum efficiency and optimization of the tax reporting process. In this context, the service is particularly suitable for:

1. Individuals who received taxable income during the tax year: This includes employees receiving income from employment contracts, as well as individuals practicing liberal professions or receiving income from other sources, such as rents, interest, dividends, etc. The service allows these persons to declare their income in an easy and convenient way, while using the tax deductions provided for in the legislation to reduce the tax base.
2. Persons operating as traders, sole traders and farmers: For these categories of taxpayers, the service offers specialized solutions adapted to the specifics of their business and taxation. It provides an opportunity to submit declarations in accordance with the deadlines set by the legislation, ensuring accurate and timely fulfillment of their tax obligations.
3. Parents who want to take advantage of tax deductions for children: The service is extremely convenient for parents who can reduce their tax base by claiming benefits for children and children with disabilities. This includes the possibility of obtaining tax deductions depending on the number and status of children.
4. Individuals who wish to benefit from relief for investments in housing, education, healthcare and donations: The system facilitates the process of applying for tax deductions for home repairs and improvements, payments for education and health care, as well as for donations in favor of various social and cultural purposes.
5. Persons with reduced working capacity: The service offers the opportunity for people with 50 percent and over 50 percent reduced working capacity to reduce their tax base, which is an important means of social support and integration.

In summary, the online service for filing an annual tax return from Elan Consulting is suitable for a wide range of individuals who are looking for an efficient, safe and reliable way to manage their tax obligations in Bulgaria. It is especially valuable for those who wish to maximize the benefits of legal tax relief opportunities while ensuring accuracy and compliance with the deadlines for filing their returns.

For what income should such a declaration be filed by a foreigner?

Foreigners who reside or receive income from sources in Bulgaria are subject to the obligation to file a tax return for their income in accordance with Bulgarian legislation, in particular under the Personal Income Taxes Act (ZDFL). This process involves the declaration of various types of income that can be received within the tax year.

For foreigners, it is important to understand that the obligation to file a tax return in Bulgaria depends on their tax resident status. Foreigners who are considered tax residents of Bulgaria (who spent more than 183 days in the country during the tax year, for whom Bulgaria is the center of vital and economic interests or have a permanent address in Bulgaria) are obliged to declare their worldwide income in Bulgaria. This includes income from work, both in Bulgaria and abroad, rental income, interest, dividends, as well as any other forms of income.

On the other hand, foreigners who are not tax residents of Bulgaria are obliged to declare only income that is received from sources in Bulgaria. This usually includes income from work carried out on the territory of Bulgaria, income from rental of real estate located in the country, and income from Bulgarian legal entities, such as dividends.

When filing the tax return, foreigners should pay special attention to the applicable bilateral tax agreements between Bulgaria and the country of their habitual residence or citizenship. These agreements may provide for special conditions or exemptions to avoid double taxation, which is particularly important for persons receiving income from multiple countries.