Patent Tax (final annual tax)
Local taxes and fees
Since the beginning of 2006 the local taxes and fees (including inhabitated house tax, garbage fee, taxes on vehicles, property acquisition taxes, and inheritance tax) are already served by the municipal administration, not by the tax administration as it was till the end of 2005. For more details about the payment of local taxes and fees, please, contact the municipal administration office corresponding to the location of the real estate or your permanent address (regarding the tax on vehicles). See contacts with the municipal authorities in Sofia.
The local taxes and fees can be paid in cash in the offices of the respective municipal administration or via bank. When the payment is made via bank, in the payment order you must fill the code for payment type for the specific type of tax or fee.
The code for payment type for the tax on real estate is 442100, and for the household waste fee it is 442400. The code for payment type for the tax on vehicles is 442300.
You can pay the inhabitated house tax and the garbage fee by Internet via ePay.
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Patent tax (final annual tax)
Since 2008 the patent tax became a local tax. This means that the returns for patent tax must be filed at the municipality where the commercial premises are located (not in the offices of the National Revenue Agency). The tax once again is paid via bank, but it must be paid to account 7311 for Local Taxes and Fees of the respective municipality according to the newly developed for this purpose code for payment type - 441400.
Return pursuant to Art. 61н of the Local Taxes and Fees Act for levying with patent tax
Although the regime of levying with patent tax now is regulated by the Local Taxes and Fees Act, there are no significant differences in the provisions.
What persons are paying patent tax?
An individual, including a sole trader, who is performing the activities specified in Annex № 4 to the Local Taxes and Fees Act (patent activities), is levied with annual patent tax for the income from these activities, providing that:
1. the turnover of the individual for the previous year does not exceed BGN 50 000, and
2. the individual is not registered under the VAT Act, except for the registration for Intra-Community Acquisition pursuant to Art. 99 and Art. 100, Par. 2 of the same act.
For the income from patent activities performed individuals are not levied under the procedure of the new Personal Income Tax Act.
Where the patent tax return is filed?
The patent tax returns and the declarations for change in the circumstances, which are related to the tax assessment, are filed in the municipality on which territory are located the commercial premises where the patent activity is performed. When the patent activity is not performed in commercial premises or is not performed from a permanent establishment, these returns are filed in the municipality corresponding to the permanent address of the individual, including sole traders. When the return is submitted by a proxy of a foreign individual, the tax return is filed in the municipality corresponding to the permanent address of the proxy. In all other cases – in the municipality of Sofia.
What is the term for filing the patent tax return?
The term for filing the patent tax return is not changed – 31 January of the current year, and after this date – right before starting the activity. The changes in the circumstances, related to tax assessment, are declared within 7 days after the occurrence of the respective circumstance.
Important! The term for filing patent tax return for 2008 is by 30 April of the current year.
What is the term for paying the tax?
There is also no change in the terms for payment. The tax is paid in four equal installments: by 31 January, by 30 April, by 31 July and by 31 October, for the respective quarters of the year.
Important! The term for paying the first and second installments for 2008 is 30 April of the current year.
Are there any discounts?
The 5% discount remains for the individuals who by 31 January file the patent tax return and within the same term pay the full amount of the tax, which is assessed according to the circumstances declared.
Important! The individuals who have prepaid the tax for the whole 2008 by 30 April receive a 5 per cent discount.
Where the patent tax is paid?
The patent tax is paid in the municipality on the territory of which the commercial premises are located or where the permanent address of the individual is – for activities that are performed from commercial premises or a permanent establishment.
The liabilities for final annual (patent) tax, which have occurred by 31 December 2007 inclusively, are paid according to the former procedure – to the republican budget at the account of NRA territorial directorate which corresponds to the permanent address of the individuals, including sole traders.
What are the sanctions for non-compliance with the provisions?
The amount of the fines remain unchanged: for tax returns non-filed or filed after the term – up to BGN 500; for incorrect data or circumstances that result in tax reduction or exemption – up to BGN 1 000.
NEW!!!
Since the beginning of 2008 the patent tax shall be administrated by the municipalities, and its amount shall be determined by the municipal councils. The tax shall vary within the statutory limits for similar activities, and it can vary among the different settlements or areas on the territory of a single municipality.