Pursuant to Art. 254, Par. 1 of the Corporate Income Tax Act (CITA), the taxable persons mentioned in Chapter 34 can choose whether their activity from ships operation is levied with the tax on the activity from ships operation. The tax rate is 10 per cent. The taxable persons, who have chosen to be levied under this procedure, are levied with this tax for a term not shorter than 5 years.
According to Art. 218, Par. 2, for all the remaining activities, except for those that must be levied with the alternative tax, the taxable persons must be levied with corporate tax.
==> Who is entitled to pay alternative tax on the activity from ships operation?
This tax is paid by the persons performing marine commercial navigation if they comply with all the following conditions:
Tax on the activity from ships operation is also due by the persons performing marine commercial navigation when they are administering ships based on management contracts, and at the same time are complying with the following conditions:
==> Restrictions to the scope of the tax
The taxable persons are not entitled to apply the procedure for levying the activity from ships operation for:
The activity from ships operation is levied with alternative tax pursuant to the Corporate Income Tax Act.
==> Terms for declaring and paying
==> Declaring the tax on the net tonnage of ships for the days the ship was in operation:
The annual tax return is submitted to National Revenue Agency’s territorial directorate, where the taxpayer is registered.
Pursuant to Art. 259, Par. 3 of the CITA, when submitting the tax return the taxpayer must also submit an annual statement of operations. Pursuant to § 1, Item 56 of the CITA’s Supplementary Provisions, the annual statement of operations shall be the one under Art. 20, Par. 4 of the Statistics Act.
==> Declarations/returns for downloading:
Declaration under Art. 259, Para. 1 of the CITA with the option to select taxation of ships operation.
Annual tax return under Art. 259, Para. 2 of the CITA for the tax due on ships operation.
==> Declarations/returns are submitted to:
==> Tax due is paid:
To state budget accounts of NRA’s territorial directorate, where the taxpayer is registered.
Payment can be made from any bank by filling in a payment order (deposit slip) for payment to the budget. Usually the banks charge a fee for the transfers. The lowest fee is charged by the bank where the account of the respective NRA territorial directorate (office) is opened.
See the list of the banks serving the accounts of the National Revenue Agency.
See details about payment of taxes and social security contributions by Internet with debit card.
The postal order shall specify the address and name of the respective territorial directorate (office) of NRA, the postal code, as well as the amount due.
Pursuant to Art. 261, Para. 1 of the CITA, a taxable person that fails to submit the tax return under this act, or fails to submit it in due time, or fails to state data or circumstances, or states incorrect data or circumstances resulting in either a lower amount of the tax or unjustified reduction, or assignment, or exemption from tax, shall be penalized with a penalty in the amount from BGN 500 to BGN 3,000. In case of a repeated (§ 1, Item 44 of the Supplementary Provisions) violation under Par. 1, the penalty shall be in the amount from BGN 1,000 to BGN 6,000 (Art. 261, Para. 2 of the CITA).
Pursuant to Art. 277 of the CITA the persons who have applied the procedure for levying the activity from ships operation and do not comply with the conditions that entitle them to choose, shall be penalized with a penalty in the amount from BGN 20,000 to 30,000, and in case of a repeated violation – in the amount from BGN 40,000 to 60,000. These persons shall not be entitled to apply the procedure for levying the activity from ships operation for the period of 5 years (Art. 277, Para. 2 of the CITA).
A taxable person who fails to perform his/her obligations under Art. 259, Para. 3 (to submit an annual statement of operations), shall be penalized with a penalty in the amount from BGN 500 to BGN 2,000, and in case of a repeated violation – in the amount of BGN 1,500 to BGN 5,000 (Art. 276 of the CITA).
The statements for administrative offences detected shall be drafted by the National Revenue Agency authorities, and the penal rulings shall be issued by the Executive Director of the National Revenues Agency or an official authorized by him/her (Art. 278, Par. 1 of the CITA).
Pursuant to Art. 278, Para. 2 of the CITA the offences are established, and the penal decisions are issued, appealed and executed according to the Administrative Offences and Sanctions Act.