Final tax on expenses is levied on the following documentarily substantiated expenditures:
3. Expenses related to the operation of vehicles when these vehicles are used for management purposes.
==> Exemption from taxation
3. Exemption is applied to social expenses for transportation of workers and employees and the persons hired under a management and control contract - from their place of residence to the place of work and back.
Exemption does not cover expenses for transportation carried out by car or by extra bus services except for the cases where such transportation is being carried out by car to hardly accessible and remote areas, and where the taxable person cannot guarantee the execution of its activity without incurrence of the expense.
==> Who pays this tax
The tax on hospitality expenses and the tax on expenses related to the operation of vehicles, when used for management activities, shall be paid by the persons subject to corporate income taxation.
Taxable persons in terms of the tax on social expenses provided in kind, pursuant to Article 204, Item 2, shall be all employers or contracting authorities under management and control contracts.
The tax on expenses is regulated by the Corporate Income Tax Act (CITA).
Social expenses, which are not provided in kind and constitute income of and individual, shall be levied under the terms and procedures of the Personal Income Tax Act.
==> Tax rate
The rate of the tax on expenses shall be 10 per cent.
==> Declaring the tax
There is no special template tax return for declaring tax on expenses. Pursuant to Art. 217, Para 1 of CITA the tax on expenses shall be declared with the annual tax return submitted by the taxable person.
==> Deadlines for payment of the tax
The tax on expenses shall be paid by 31 March of the next calendar year.
==> Payment of the tax
The tax on expenses can be paid in one of the following ways:
To state budget accounts for the respective Territorial Directorate of NRA according to the place of registration
Payment can be effected from any bank by filling in a payment order (deposit slip).
Payment via Internet requires possession of a debit card and registration at the E-pay and the NRA websites.
See details about payment of taxes and social security contributions with a debit card via Internet. (BG)
The postal order shall contain the address and the name of the respective Territorial Directorate (office) of NRA, the postal code, as well as the amount due.
Where a tax due has not been paid within the specified deadline, interest shall be due pursuant to the Act on Interest on Taxes, Fees and other State Receivables.