On 24 March 2020, the Measures and Actions During State of Emergency Act was enacted in Bulgaria, which introduces temporary tax measures to dampen the effects of the COVID-19 situation. These measures include:
Extension of reporting deadlines for corporate and personal income
The 2019 annual reporting on corporate income tax, expenses tax, gambling tax, merchant vessel operation tax are extended until 30 June 2020 from the standard deadline of 31 March 2020. The payment terms of the taxes due have been extended correspondingly.
Personal income tax returns and underlying personal income tax for 2019 are due by 30 June 2020. (The standard deadline was 30 April 2020).
The filing of the annual financial statements for companies is also extended until 30 September 2020.
Advance instalments for corporate income tax
The 2020 advance instalments (monthly and quarterly depending on the size of business) are still due. Entities will be able to report the size of such instalments by 15 April 2020 either by filing the annual corporate income tax return or filing for the amount of the advance instalments only.
Real estate and vehicle tax relief
The standard 5% discount of the amount due on real estate taxes and vehicle taxes will be available upon prepayment of the whole amount for the 2020 liability until 30 June 2020.
No emergency measures for VAT, excise duties and withholding tax
No reporting or payment relief or deadlines extensions for VAT and excise duties were adopted. Businesses are still required to report and pay VAT and excise duties on a monthly basis.
There are no extensions and additional measures for reporting and payment of withholding and capital gains taxes due by non-residents for income sourced in Bulgaria.
No forcible collection of liabilities during the state of emergency
During the state of emergency the forcible collection of taxes is suspended, but the public bailiff can still undertake different precautionary measures to secure the collection of liabilities.
The statute of limitations for public liabilities is suspended for the duration of the state of emergency.
For more information on the emergency tax measures adopted in Bulgaria, contact your regular CMS advisor or local CMS experts: